Tariff Tensions Slow Port of Los Angeles and Trucking Activity

The Port of Los Angeles saw its first drop in container volume in nearly a year, as new tariffs stall trade flows and ripple across the supply chain.

For the first time in ten months, container volumes at the Port of Los Angeles declined year-over-year, ending a stretch of steady growth.

The port processed 716,619 TEUs in May, down 5% compared to the same month in 2024 and marking the lowest monthly output in over two years.

According to Executive Director Gene Seroka, the slowdown is directly linked to newly implemented tariffs under the Trump administration, including a 10% universal baseline tariff that went into effect in April.

“Unless long-term, comprehensive trade agreements are reached soon, we’ll likely see higher prices and less selection during the year-end holiday season,” Seroka said.

Declining Imports, Missed Expectations

• Imports fell 9% year-over-year, with 355,950 loaded TEUs handled in May.
• Exports declined 5%, totaling 120,196 loaded TEUs.
• The port also processed 240,472 empty containers, a 2% increase from last year.
• Overall, May volumes were down 19% compared to April—a month that typically sees weaker numbers.

Year-to-date volumes remain up 4% from the same period in 2024, but the outlook is increasingly uncertain as trade disputes weigh on shipping activity.

Trucking Businesses Feel the Impact

The effects have extended inland, particularly to local trucking operations that rely heavily on port container flows.

“If you’re a trucker who was hauling four or five containers a day prior to these announcements back in April, today, you’re likely hauling two or three loads,” Seroka noted.

The California Trucking Association echoed the concern, pointing out that the San Pedro Bay Port Complex accounts for 40% of U.S. imports. “Less goods coming to the ports means less truck drivers on the road,” the association said in a statement to Trucking Dive.

As Los Angeles Port volumes slow, truckers see less business

Global tariffs have led to ripple effects across the supply chain, including fewer ships and containers to haul, per the port’s executive director, Gene Seroka.

Supply Chain DiveAlejandra Carranza

Seventeen sailings were cancelled in May alone, amounting to an estimated loss of 225,000 container units. Despite previous forecasts of a summer import surge—especially before tariff pauses on Chinese goods expire in July and August—Seroka said he hasn't seen those volumes materialize.

“Retailers are not telling me that they’re boosting inventory levels,” Seroka said. “So I’m not seeing that either.”

Rising Costs for Consumers

Ernie Tedeschi, Director of Economic Studies at Yale Budget Lab, estimated that the tariffs would raise average prices by 1.5%, costing households nearly $2,500 annually in lost purchasing power. Lower-income families are expected to be hit the hardest, with products like shoes, apparel, and electronics facing double-digit price hikes.

Source: FreightWaves | SupplyChainDive