Latest news with #Seroka
New York Post
19 hours ago
- Business
- New York Post
Port of Los Angeles sees record container traffic as importers sprint to beat Trump tariff deadlines
Importers are rushing to bring goods into the US ahead of looming tariff deadlines, driving a surge in shipping activity that port officials say reflects uncertainties surrounding President Trump's trade policy. The Port of Los Angeles recorded its busiest June in history, handling 892,340 twenty-foot equivalent units (TEUs), an 8% increase over the same month last year. Port executives attributed the spike to a 'tariff whipsaw effect,' with shippers accelerating orders before a mid-August deadline for new tariffs on Chinese goods. Advertisement Though June was a record-setting month for the Port of Los Angeles, which is the largest container port in the US and the entire Western Hemisphere when measured by annual throughput, officials warned the gains are likely temporary. 4 The Port of Los Angeles recorded its busiest June in history, handling 892,340 twenty-foot equivalent units (TEUs), an 8% increase over the same month last year. REUTERS The National Retail Federation projects a double-digit decline in cargo volume at US ports from August through November as importers finalize holiday orders and tariffs take hold. Gene Seroka, Executive Director of the Port of Los Angeles, told CNBC that the activity underscores how shifting trade policy timelines are directly impacting the flow of goods. Advertisement 'Shifting timelines simply mean shifting volume and more uncertainty here at the Port of LA,' Seroka said. 'Looking into August, if everything holds the way we see it right now, I expect volume to ease because of those new tariffs being in place, making it more costly for American importers.' The increase in traffic came after Trump reduced tariffs on Chinese goods from 145% to 45%, prompting a temporary boost in orders from US manufacturers. That brief reprieve helped fuel China's trade surplus to $114.7 billion last month. Advertisement Still, Seroka noted that any benefit from the surge will be short-lived. Holiday cargo orders for the end of the year are already finalized, he said, and no significant new orders are expected. 'It's too late to try to negotiate orders at this point in time for that year-end product,' Seroka told CNBC. Retailers and manufacturers continue to feel the financial impact. Bobby Djavaheri, president of Yedi Houseware, told CNBC his company has seen shipping expenses soar due to overlapping tariffs on Chinese imports and stainless steel. 4 Port executives attributed the spike to a 'tariff whipsaw effect,' with shippers accelerating orders before a mid-August deadline for new tariffs on Chinese goods. REUTERS Advertisement 'Before the tariffs, one load would have cost between $1,500 to $2,000. Now it's between $40,000–$50,000,' Djavaheri said during a container update call hosted by the port. Mike Short, president of global freight forwarding at CH Robinson, said some shippers are limiting imports to essential items like back-to-school goods, while others accelerated shipments from Southeast Asia or stuck to traditional schedules. 'Although we're approaching traditional retail peak season for ocean, it's not likely the industry will see traditional peak volumes, as many of our 7,500 retail customers are working through inventories and being highly selective and strategic, bringing in only the essential products they must import,' he said. Meanwhile, Trump has issued letters detailing new tariffs on several Asian nations and announced a preliminary trade agreement with Vietnam that could increase tariffs on many of its exports to 30%. While the deadline extensions have offered companies a few extra weeks, Short said the typical 20–30 day ocean transit time — and longer for East Coast deliveries — means most firms are still under pressure. For those without secured shipping space, more expensive air freight remains the only option. Josh Allen, Chief Commercial Officer at ITS Logistics, said supply chain professionals are rapidly adjusting to changes in sourcing and shipping routes. 4 Port officials say the surge in shipping activity reflects the volatility of President Trump's trade policy and its ripple effects on global supply chains. REUTERS 'We are watching and responding to these changes in real time,' Allen told CNBC. Advertisement He added that despite the record-setting June, the broader slowdown in global trade is giving the industry some room to adapt. 'The logistics industry can handle and recover because demand has been depressed,' he said. Kim Vaccarella, founder and CEO of the fashion and accessories company Bogg, began shifting production to Vietnam to avoid tariffs on Chinese goods. But key components — including machines, molds and raw materials — still come from China. 'We have narrowed the production of our bags from four to two,' Vaccarella said. 'Originally, we cut our manufacturing by 50% but because we are now manufacturing two bags we added back some orders, but not all.' 4 The National Retail Federation projects a double-digit decline in cargo volume at US ports from August through November as importers finalize holiday orders and tariffs take hold. REUTERS Advertisement Bogg raised prices in April in response to tariffs, then rolled them back when Trump paused the schedule. 'Everything is up in the air because of all the uncertainty,' Vaccarella told CNBC. 'After the April claw back in prices, we announced we would make a decision in July on prices, but we still have no clear picture.' Advertisement Adding to the confusion is the proposed US-Vietnam trade deal, which includes a 40% additional tariff on transhipments — products that begin production in China but are finished in another country like Vietnam. The Post has sought comment from the White House.
CNBC
2 days ago
- Business
- CNBC
Port of Los Angeles sees record container traffic as shippers race to beat Trump's tariff deadlines
The Port of Los Angeles reported its best June ever for shipping container traffic, an increase in ocean freight that port executives described as a tariff whipsaw effect, with shippers racing to beat President Trump's trade taxes, especially a mid-August deadline for tariffs on Chinese goods. A total of 892,340 twenty-foot equivalent units (TEUs) were processed at the Port of Los Angeles in June, containers filled with holiday season and consumer replenishment products. The increase in containers was not a surprise after President Trump lowered the 145% tariff on Chinese goods to 45%. The deadline for the tariff negotiations with China is currently set for August 12. An increase in U.S. manufacturing orders from China during the pause helped fuel China's trade surplus to $114.7 billion last month. It's been the busiest June in the 117-year history of the port, but port officials have stressed in recent commentary that the increase in freight should not be referred to as a surge, and that tone was reiterated with the June numbers now official, and an 8% improvement over last year, Port of LA Executive Director Gene Seroka said that more than anything else, the monthly data highlights the tariff whipsaw effect. Imports had slowed significantly in May and continued to drop through the first half of June. "Shifting timelines simply mean shifting volume and more uncertainty here at the Port of LA," said Seroka. "Looking into August, if everything holds the way we see it right now, I expect volume to ease because of those new tariffs being in place, making it more costly for American importers," he said, citing a National Retail Federation forecast for a double-digit percentage drop in cargo volume from August through November at U.S. ports. Seroka said the year-end holiday cargo orders should already be in. "It's too late to try to negotiate orders at this point in time for that year-end product," he said. For importers, even amid the trade war pause, the cost of the mounting tariffs has been significant for their businesses. Bobby Djavaheri, president of Yedi Houseware, told CNBC during a monthly container update call hosted by the Port of Los Angeles that the layering of China tariffs plus stainless steel tariffs has greatly increased the tariff bill his firm is paying on air fryers and other kitchen appliances. "Before the tariffs, one load would have cost between $1,500 to $2,000. Now it's between $40,000-$50,000," said Djavaheri. Mike Short, president of global freight forwarding for C.H. Robinson, said even with the big June numbers in LA, some shippers are reducing import volumes and only bringing in essential products like back-to-school items. "Others accelerated shipments to beat tariff deadlines from Southeast Asia, and many stuck to their standard peak season schedules, taking a more wait-and-see approach," said Short. "Although we're approaching traditional retail peak season for ocean, it's not likely the industry will see traditional peak volumes, as many of our 7,500 retail customers are working through inventories and being highly selective and strategic, bringing in only the essential products they must import," he said. Trump last week issued letters covering new tariffs he plans to place on several Asian nations, while recently striking a preliminary trade deal with Vietnam that brings tariffs on many of its products up to 30%. Short said while the recent deadline extensions provided nearly a month of breathing room, that's not enough time for most ocean shipments, which take on average between 20–30 days of transit time. East Coast travel time can be longer. For U.S. companies that need to bring in product but did not secure ocean freight, more expensive air freight is the only option. Josh Allen, COO of ITS Logistics, said the landscape of sourcing is changing, and supply chain and logistics professionals are now charged with building new routes to move goods from manufacturing locations to end markets. When a company's manufacturing base is changed to a different country, travel time on the ocean can be longer, and the U.S. port destination can be different. "We are watching and responding to these changes in real time," Allen said. He added that despite a record June for LA's port, the broader trade slump is helping to navigate the changes. "The logistics industry can handle and recover because demand has been depressed," he said. Kim Vaccarella, founder and CEO of fashion and accessories company Bogg, started to diversify her company's manufacturing in Vietnam to offset the tariffs on China, but all of the machines, product molds, and raw materials continue to come from China. "We have narrowed the production of our bags from four to two," said Vaccarella. "Originally, we cut our manufacturing by 50% but because we are now manufacturing two bags we added back some orders, but not all." President Trump's trade deal with Vietnam is still not official, and the initial language on the deal includes a 40% additional tariff on transhipments, a reference to products that begin their manufacturing journey in China even if they are ultimately finished in another nation such as Vietnam. Bogg temporarily increased prices back in April before Trump paused tariff schedules, but then reinstated the original pricing. "Everything is up in the air because of all the uncertainty," Vaccarella said. "After the April claw back in prices we announced we would make a decision in July on prices, but we still have no clear picture."
Yahoo
17-06-2025
- Business
- Yahoo
Tariff damage looms without new trade deal, says economist
May's lower import volumes through the Port of Los Angeles could be a sign of things to come absent a new trade deal with China, even as the tariff pause boosts U.S.-bound shipments even with year-ago levels. The southern California container gateway, a bellwether indicator for broader economic activity, saw its 10-month growth streak snapped on total throughput of 717,000 twenty foot equivalent units, 5% lower than the previous year's volume for the same month. The 9% drop in imports from the previous year and a sharp 19% decrease compared to April prior to the tariff pause created a striking variance from expectations. 'Inbound cargo totaled 356,020 TEUs, about 25% less than our projections from the beginning of April, prior to the tariffs' announcement,' said port Executive Director Gene Seroka, in a media totaled 120,000 units, also down 5% y/y, the sixth straight month of decline. Seroka said it was 'promising' that the U.S. and China continue to talk, referring to the recent negotiations in London. But 'tariffs remain elevated,' maintaining an impactful 55% rate on Chinese imports to the United States. The retaliatory tariffs from China, averaging 10%, contribute to an uncertain trade environment. Still, data from SONAR showed shippers taking advantage of the tariff pause. Through June 16 loaded container volume headed to the U.S. from Chinese ports was even with year-ago Tedeschi, director of economics at the Budget Lab at Yale University, in the briefing provided a detailed analysis of how the tariffs are affecting consumers and the economy at large. 'Tariffs to date announced in 2025 raise the average effective tariff rate in the United States by an additional 12 percentage points,' Tedeschi said. This increase translates into a 1.5% hike in prices for American families, which effectively reduces purchasing power by approximately $2,500 per family per year in 2024 dollars. Tedeschi said the regressive nature of tariffs 'hurt lower and working-class families more,' with those at the income scale's bottom experiencing a 2.5% pinch compared to the top's 1%. As the conversation turned to the inflationary impacts of tariffs, Tedeschi said it takes time for tariffs to flow through to the official data. He said tariffs on imported washing machines in 2018 took three months to influence consumer prices significantly. The current situation, complicated by factors like inventory levels and uncertain policy outcomes, suggests a gradual but persistent effect on inflation. Despite these challenges, there was a semblance of positive news shared with respect to future port activities. Seroka noted, 'Released just this week, the National Retail Federation's port tracker predicts a decline in imports for June, July, and August.' Although this points to continued caution, the port's operational readiness offers some optimism. 'Our velocity statistics are good,' Seroka emphasized, indicating that the port's infrastructure is well-prepared to manage fluctuating cargo volumes efficiently. Find more articles by Stuart Chirls here. WATCH: 'Dark fleet' tanker collision sparks fire near Strait of Hormuz Los Angeles box volume hits lowest level in two years Israel ports unfazed by new missile strikes UPDATE: Return of Red Sea cargo 'less likely' after attacks on Iran The post Tariff damage looms without new trade deal, says economist appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
Port of LA Imports Dip 9% in May After Tariff Shock
The Port of Los Angeles handled 9 percent fewer imports in May than last year as inbound cargo volumes into the California gateway were hampered by tariffs implemented by the Trump administration in April. With fewer ships entering the port due to mass blank sailings in the weeks after the tariffs were imposed, the L.A. port brought in 355,950 20-foot equivalent units (TEUs) of loaded imports. On a month-over-month basis, these import numbers declined 19 percent from April, despite May volumes typically being stronger during most years as the traditional peak shipping season approaches. More from Sourcing Journal China Retail Sales Saw May Bump in Spite of Tariff Firestorm Apparel Tariffs Climbed to Historic Highs in April China-to-US Freight Rates 'No Longer Surging'-Is it All Downhill from Here? The import total was 25 percent less than what the port forecasted on April 1, a day ahead of President Donald Trump's 'Liberation Day' tariffs that threw the supply chain out of sorts, namely on the trans-Pacific trade lane out of China. The duty rate on imports from China escalated as high as 145 percent before the countries agreed to a 90-day pause in May. Earlier this month, the countries were able to settle on a 55 percent tariff on Chinese goods, along with China keeping a 10 percent duty on American exports. After the initial shock of the 145 percent tariff, 'many importers just simply slammed on the brakes and halted any movement of cargo,' said Port of Los Angeles executive director Gene Seroka during a Friday briefing. For the month, 17 canceled sailings amounted to 225,000 TEUs that didn't show up at the port, according to Seroka. He noted that truckers hauling four or five containers prior to the Liberation Day announcement are currently hauling two or three loads. And for every two longshore workers reporting to the hiring hall in late May, one left without work, he said. 'It's very slow here seasonally, as we've already blown past summer fashion and are looking forward now to back-to-school and Halloween before the all-important year-end holidays,' Seroka said. 'Cargo for those micro seasons needs to be here on the ground right now. I don't necessarily see that in inventory levels.' The port director predicted there would likely be higher prices and fewer selections for both the back-to-school and Halloween seasons. 'We will see a little bit of a peak season in the month of July trying to get ready for the Christmas and year-end holiday season,' Seroka said. 'But again, retailers are not telling me that they're boosting inventory levels to have wide selections on products beginning that Thanksgiving week and running to the end of the year.' Ernie Tedeschi, director of economics at The Budget Lab at Yale, said during the briefing that the tariffs would raise average prices by 1.5 percent, which would cut purchasing power of nearly $2,500 per household per year. But not all tariffs are made equal, he warns. 'Products that Americans are more likely to import are going to be pinched much more than other products. In particular, products like leather goods, things like shoes and handbags, products like apparel and consumer electronics—we believe will all see double-digit price increases in the short run over the next year or two,' Tedeschi said. According to The Budget Lab's estimates, leather products could see price increases of 30 percent, while apparel's price tag would jump 28 percent. Textiles could see a price hike of 15 percent, Tedeschi said. In April, apparel imports already saw a 20.1 percent tariff rate worldwide, according to U.S. International Trade Commission data. Seroka again downplayed any potential cargo surge that analysts have expected would flood the Ports of Los Angeles and Long Beach in June and July, pointing to recent Global Port Tracker projections. During the summer months of June, July and August, U.S. ports are expected to see inbound cargo declines of 6.2 percent, 8.1 percent and 14.7 percent, respectively. During the Friday briefing, Seroka said there were 12 ships at the L.A. port, 'which is a good number for this time of year' and 'one of the few double-digit ship days we've had in weeks.' Additionally, he highlighted upcoming import projections over the next two weeks of 122,000 and 124,000 TEUs, both figures of which he said 'are pretty average for where we should be.' Loaded exports at the Port of Los Angeles totaled 120,196 TEUs, a 5 percent drop from 2024. The port processed 240,472 empty container units, 2 percent more than last year. Across the board, the port handled 716,619 TEUs in May, 5 percent less than last year. Coincidentally, last month marks the first year-over-year decline in throughput since the year-ago month. 'There's less than 30 percent of the cargo on the docks today than was at the peak during Covid,' said Seroka. 'We got plenty of room to manage the cargo.' After five months in 2025, the Port of Los Angeles has handled 4,063,472 TEUs, 4 percent more than the same period in 2024.
Business Times
15-06-2025
- Business
- Business Times
Port of LA imports drop 19% in May as tariffs hit US businesses
Import volumes through the busiest trade hub in the US fell 19 per cent from the month before, a fallout from President Donald Trump's tariffs. 'It's very slow here seasonally,' Port of Los Angeles executive director Gene Seroka told reporters last Friday (Jun 13). Seroka warned that US businesses are facing high tariffs and uncertainty during what is typically the start of the peak season, and the consequences are likely to show up on store shelves in a few months. 'We've already blown past summer fashion and looking forward now to back to school and Halloween before the all important year-end holidays,' Seroka said. 'Cargo for those micro seasons needs to be here on the ground right now. I don't necessarily see that in inventory levels.' The drop in port activity came as importers and retailers – especially those with business in China – grappled with the uncertainty of Trump's trade war. Tariffs on goods from China were as high as 145 per cent in April, when many of the goods arriving in Southern California in May would have left Asian ports. In May, cargo handlers at the Port of Los Angeles processed a total of about 717,000 equivalent units, or TEUs. About 356,000 of those were imports, a 19 per cent drop compared to a month ago and 9 per cent lower than May 2024, Seroka said. Exports through Los Angeles fell to just over 120,000 containers, marking the sixth straight month of year-on-year declines as other countries responded with retaliatory tariffs, particularly for US agricultural goods, Seroka said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up While import flows may pick up again as importers rush to bring goods in during a temporary agreement between the US and China to lower the highest of the tariffs, import levies on goods from China remain prohibitively high for many businesses. 'When all is said and done, buying products out of China right now still costs one and a half times more than it did earlier this year, making products of all types extremely expensive,' Seroka said. Despite the cancelled and delayed orders, importers still paid a record US$23 billion in customs duties in May, US Treasury data released last week showed. That translates to an average effective tariff rate of roughly 7.5-8 per cent, up from 2.5 per cent at the beginning of the year, according to Ernie Tedeschi, director of economics at Yale University's Budget Lab and a former Biden administration official. And there's still a ways to go before all of the tariffs announced by the Trump administration are implemented, Tedeschi said at the Port of Los Angeles briefing. 'We estimate that current policy is equivalent to a 15.5 per cent average effective tariff rate, including the new announcements for 2025 and the levels prior to them.' BLOOMBERG
