As the busiest container gateway in the U.S., the port processed a total of 778,406 twenty-foot equivalent units (TEUs), marking a 4.7% increase compared to March 2024. This strong performance contributed to a solid first quarter, with the port handling 2,504,049 TEUs overall, reflecting a 5.2% increase from the previous year.

In March, loaded imports reached approximately 385,531 TEUs, showing a 1.6% year-on-year growth. This increase came as importers rushed to bolster their inventories ahead of more punitive tariffs set to take effect. However, Port of Los Angeles Executive Director Gene Seroka warned that imports are expected to start declining as soon as May and could see a significant drop of at least 10% in the second half of the year as these tariffs weigh on demand for foreign goods.

About 40% of the imports entering the U.S. through the Port of L.A. originate from China, and many of these items are now subject to 145% tariffs. While President Trump announced a 90-day pause on higher reciprocal tariffs on other countries, imports from most nations are still facing at least 10% duties, along with additional levies on specific goods like steel and aluminum.

The port also registered approximately 123,000 TEUs of loaded exports, reflecting a 15% decline from the previous year. This pullback highlights the growing pressure on agricultural and manufacturing exporters as counter-tariffs—including 125% levies imposed by China—begin to take effect.

Considerations:

The modest increase in cargo volumes at the Port of Los Angeles is a positive sign, especially given the challenges posed by the current global trade environment. However, the anticipated decline in imports starting in May raises significant concerns.

The influence of tariffs should not be overlooked. As importers face rising costs due to these tariffs, they may alter their purchasing strategies, potentially leading to decreased demand for goods. This adjustment could result in a more significant decline in cargo volumes than currently projected. Moreover, the frontloading of shipments to circumvent tariffs may create a temporary spike in imports, followed by a sharp decrease as inventory levels stabilize.

As tariffs continue to impact consumer prices and spending habits, the Port of Los Angeles may see fluctuations in cargo traffic that complicate long-term planning. The port’s ability to adapt to these evolving conditions and support its importers will be vital in navigating the uncertainties that lie ahead. Seroka noted, “Buckle up, this is going to get really bumpy for us,” emphasizing the challenges ahead for the port and its stakeholders.