Port of LA reports cargo growth in April despite tariffs

LOS ANGELES - The Port of Los Angeles reported a 9.5% increase in container volume in April compared to the previous year, marking the tenth consecutive month of year-over-year growth. 

However, port officials also noted a decrease in exports due to existing retaliatory tariffs and expressed concerns about the impact of ongoing trade policy changes on future volumes and the broader economy.

What we know:

The Port of Los Angeles handled 843,000 containers in April, a significant 9.5% increase compared to April 2024. 

This growth was primarily driven by a 5% rise in imports, which reached 439,230 TEUs. 

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The port has now experienced ten straight months of year-over-year growth, and year-to-date volume stands at approximately 3.4 million TEUs, a 6% increase from the same period last year. 

According to Port of Los Angeles Executive Director Gene Seroka, this recent growth is partly due to businesses trying to offload shipments before new U.S. tariffs take effect.

What we don't know:

Despite the recent growth, the long-term impact of the evolving trade policies remains uncertain. 

Seroka noted that the rapid changes are making it difficult to forecast short-term trends. 

While a 90-day pause on some of the newly announced tariffs has been implemented, the future of these levies and their effect on global trade is still unclear. 

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Additionally, the extent to which a potential uptick in shipping from China will offset an expected overall decrease in cargo volume at the port is yet to be seen.

By the numbers:

• 843,000: Total containers handled by the Port of Los Angeles in April.
• 9.5%: Year-over-year increase in container volume for April.
• 10: Consecutive months of year-over-year growth for the port.
• 439,230 TEUs: Imports landed in April, a 5% increase from 2024.
• 128,394 TEUs: Exports in April, a 3.5% decrease from 2024.
• 275,183 TEUs: Movement of empty containers, a 25% increase from 2024.
• 3.4 million TEUs: Approximate year-to-date volume, a 6% increase.
• 17.8%: The overall average effective tariff rate faced by U.S. consumers, the highest since 1934, according to The Budget Lab at Yale University.
• 17: Confirmed cancellations of cargo ship arrivals in Los Angeles for June, with 10 more planned.
• 30%+: The import side volume decrease at the Port of LA in the first week of May.
• $2 billion: Value of ongoing infrastructure projects at the port.
• 20,000: Number of workers UPS is reportedly laying off, partly due to changes in consumer uptake and the parcel service business.

What they're saying:

"Initially that growth was propelled by a robust economy and high consumer confidence levels," said Gene Seroka. "More recently, the key factor has been the push to bring cargo in ahead of today's tariffs."

Regarding the difficulty in forecasting, Seroka added, "It's clear that we'll see a pullback in global trade."

On the impact of the tariffs, Seroka stated, "Tariffs are still elevated, and these deadlines coming up will cause a little bit of trepidation -- not knowing where we'll all land after the pauses of 90 days with respect to China and the rest of the world."

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He also noted the broader economic consequences: "According to The Budget Lab at Yale University, a non-partisan policy research center, consumers face an overall average effective tariff rate of 17.8%, the highest since 1934. Additionally, tariffs disproportionately affect clothing and textiles, with consumers facing 15% higher shoe prices and 14% higher apparel prices in the short-run."

Looking ahead, Seroka commented, "As we had been talking about, volume in the first week of May here at the Port of LA was down more than 30% on the import side of our ledger," and "The May volume drop is likely to be substantial when we close the books on this month."

Finally, on the potential impact on the workforce, Seroka warned that "less cargo means less work on the waterfront" but expressed hope that ongoing infrastructure projects would help mitigate job losses: "What we see today are about 3,500 construction workers on the job every day. I want to keep those women and men out there working."

Why you should care:

The fluctuating cargo volumes and the uncertainty surrounding international trade policies directly impact the economy, both locally and nationally. As one of the busiest ports in the Western Hemisphere, the Port of Los Angeles serves as a crucial gateway for goods entering and leaving the United States.

Changes in its operations can affect supply chains, consumer prices, and employment in related industries. The potential for decreased cargo volume could lead to reduced work for dockworkers and other logistics professionals. 

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Conversely, the port's ongoing infrastructure projects represent a significant investment in the region's economy and provide employment opportunities.

The tariffs being implemented and discussed have the potential to raise the cost of everyday goods for consumers, as highlighted by the Yale study. Understanding these dynamics is essential for businesses, consumers, and policymakers alike.

What's next:

Port officials anticipate a substantial drop in import volume for May. 

While there might be a temporary increase in shipments from China due to the tariff adjustments, it's not expected to significantly offset the overall downward trend. 

The port will continue to monitor the impacts of the tariffs and the ongoing trade negotiations. 

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The 90-day pause on some tariffs will be a key period to watch for potential shifts in trade flows. 

The progress of the port's $2 billion in infrastructure projects will also be important in sustaining economic activity in the region during this period of uncertainty.

 

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