Tariff Hike Drives Shift in Shipping, Strains Small U.S. Ports

(MENAFN) A looming hike in U.S. tariffs is triggering a major shift in shipping patterns, boosting business at the Port of Los Angeles while leaving smaller ports across the country grappling with sharp declines in cargo, job losses, and reduced revenue, media reported Monday.

According to the latest figures, the Port of Los Angeles handled 892,340 twenty-foot equivalent units (TEUs) in June—an all-time monthly high and an 8% increase compared to the same month last year.

Port of Los Angeles Executive Director Gene Seroka told media the surge was driven by importers rushing to bring in holiday merchandise ahead of new tariffs set to take effect on August 1. “We’re seeing cargo owners fast-track goods so they beat the clock,” he explained, adding that he anticipates volumes will dip once the new duties are implemented.

This influx at the nation's busiest port appears to be coming at the expense of smaller terminals. In Northern California, the Port of Oakland processed just 168,460 TEUs in June—a 10.1% decline from May and 12.8% drop from June 2024. Port leaders attributed the downturn to instability caused by shifting trade policies, rather than a typical seasonal slowdown.
A July analysis by logistics provider ITS Logistics revealed that while operations remain stable at major ports, smaller facilities are under pressure as shippers consolidate freight to mitigate risks tied to fluctuating tariffs. The firm projected that this volatile pattern is likely to continue through late 2025.

Meanwhile, in the Pacific Northwest, container volumes through the Seattle-Tacoma alliance fell roughly 30% in May following the announcement of fresh tariffs, according to local media reports. The downturn has resulted in reduced working hours for longshore and trucking workers in the region.

Experts cautioned that this reorganization in trade routes could severely impact local economies dependent on consistent cargo flows. The Port of Oakland, for instance, estimates its terminals support around 98,000 jobs and contribute $174 billion in economic activity.

Even officials in Los Angeles warned the current boom may be temporary. The port reported that 20% of scheduled sailings were canceled in May, and forecasts suggest a potential drop-off in volume after the August deadline established by President Donald Trump's administration.

Officials emphasized that agricultural exporters could face the most immediate fallout. Around half of Oakland’s cargo containers typically carry perishable goods—such as citrus fruits, meat, and nuts—destined for Asia.

With no progress in trade talks and tariff rates poised to rise further, analysts predict the gap between America’s high-traffic gateways and its smaller ports will likely grow deeper, leaving many coastal economies waiting for shipments that may never return.

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