Gene Seroka, Executive Director of the Port of Los Angeles, confirmed during his recent monthly briefing that while vessel bookings from China are increasing due to the 90-day pause in U.S.-China tariffs, a major surge in container traffic is unlikely.
“We’re seeing an uptick in bookings from China, but nothing close to the 30% spike experienced during the peak of COVID,” said Seroka. “Based on discussions with stakeholders and a review of the latest shipping data, current booking levels remain elevated, but controlled. Retailers and manufacturers are still cautious due to high shipping costs.”
On May 12, China and the U.S. agreed to a 90-day suspension of reciprocal tariffs, significantly reducing duties on Chinese goods from 145% to 30%. While this has led to a temporary rise in cargo activity, Seroka emphasized that the Port of Los Angeles is fully equipped to handle any increase.
As the industry moves into the June-July peak shipping season, the port chief anticipates a period of relatively strong but manageable volumes—estimated at 70–80% of typical seasonal levels. “There are goods in China waiting to move, but liner capacity is available, and vessel bookings three weeks out are still only about 80% of what’s considered normal,” Seroka noted.
Port Volume on the Rise – But Not Overwhelming
In April, the Port of Los Angeles handled approximately 843,000 twenty-foot equivalent units (TEUs), a 9.5% year-over-year increase, marking the third-best April on record. Imports rose by 5% to 439,000 TEUs, while exports fell by 3.5% to 128,000 TEUs, marking the fifth straight month of declining exports.
However, Seroka cautioned that early May import volumes dipped by 30% year-over-year due to tariff-related uncertainty. He expects this downward trend to affect overall May performance significantly.
“It’s clear we’ll see a short-term pullback in global trade,” Seroka stated. “There’s been a rollercoaster effect from financial market volatility, changes in consumer sentiment, and last week’s U.S. credit rating downgrade by Moody’s.”
Year-to-Date Growth Remains Positive
Despite recent fluctuations, the Port of Los Angeles has seen consistent growth. As of April, it had processed 3.4 million TEUs for the year—up 6.6% compared to 2024. Since August 2023, the port has experienced year-over-year growth in 19 of the past 21 months.
In addition, efforts to enhance cargo flow have included shipping more empty containers back to Asia for repositioning. In April alone, the port moved 842,000 empty TEUs—a 25% increase compared to the previous year. “Liner operators are making a concerted effort to pre-position empty containers more effectively, helping the industry respond better to demand swings,” Seroka explained.
Looking Ahead
As global trade continues to adapt to shifting economic policies and market trends, the Port of Los Angeles remains a critical hub for trans-Pacific commerce. While short-term uncertainties persist, the port’s leadership maintains confidence in its ability to manage fluctuations and support a resilient supply chain for U.S. businesses.
