The Los Angeles port, America's busiest container gateway, has recently experienced unusual declines in shipping activity due to trade policy uncertainties. As the primary hub connecting Asian markets with the US, the port handles 40% of total US container volume alongside Long Beach port, with 45% of its business directly linked to China.
Port Executive Director Gene Seroka projected a 20% reduction in vessel arrivals and 25% decrease in cargo volume by month's end. However, following the May 12 US-China trade agreement, Port Optimizer data shows projected weekly import increases of 16.1% and 21.98% respectively for the next two weeks.
The 90-day negotiation window has triggered dramatic shipping demand fluctuations. Flexport CEO Ryan Petersen reported a 275% weekly surge in China-US ocean freight bookings. This demand spike has prompted eight carriers to announce General Rate Increases (GRI) up to $3,000 per FEU for Asia-US routes, effective June 1.
West Coast ports show contrasting activity patterns. While Long Beach saw 35-40% volume drops recently, including a 12-hour period with zero China-bound arrivals, Seattle port anticipates summer workforce expansions to handle expected surges. The Northwest Seaport Alliance forecasts 8-15% below-normal volumes currently, with China-origin vessels carrying 17% less cargo.
Retail sector responses highlight supply chain dependencies. The National Retail Federation notes retailers are accelerating holiday season shipments during the tariff reprieve. Small businesses particularly emphasize Chinese manufacturing necessities - from bottle caps to hair accessories - where domestic alternatives remain cost-prohibitive.
Despite short-term relief, industry leaders express concerns about the 90-day window's adequacy. LA port officials note this barely covers standard order-to-shipment cycles, while hydraulic equipment manufacturers cite typical four-month lead times. Retail giants like Walmart acknowledge ongoing pricing pressures, with smaller businesses hesitating on new orders amid lingering uncertainty.
The shipping market's rapid transition from slowdown to surge creates operational challenges. Linerlytica analysts anticipate an early peak season, traditionally July-September, potentially beginning two months early. This compressed timeline tests supply chain resilience as stakeholders navigate volatile demand and pricing landscapes.
Longer-term questions persist about trade policy stability's impact on port operations and the broader logistics network supporting approximately 1 million Southern California jobs tied to port activity. Industry observers emphasize the need for consistent trade flows to maintain supply chain efficiency and employment stability in this critical economic sector.