Port operations in Los Angeles, USA. (Associated Press)
The volume of shipments from China to ports on the U.S. West Coast is expected to drop significantly next week as companies slash import orders due to President Trump's tariff measures. The director of the Port of Los Angeles predicts that the decline could exceed one-third.
Gene Seroka, executive director of the Port of Los Angeles, told reporters on the 29th, "According to the port optimization system we use to measure loading volumes from Asia, the volume will be more than 35% lower than last year at this time. Due to some large American retailers halting all shipments from China because of tariffs, the loading volume has plummeted."
Seroka said that freight volumes from China account for about 45% of the total volume handled by the Port of Los Angeles. However, some shipping companies will try to pick up goods from other locations in Southeast Asia to fill their ships.
In addition to the reduction in freight volume, Seroka expects that approximately one-fourth of the vessels originally scheduled to arrive at the Port of Los Angeles in May will be canceled.
Some economic analysts warn that data on shipment volumes from China already shows a slowdown in trade with the U.S. Torsten Slok, chief economist at Apollo Global Management, recently outlined a timeline including reduced imports from China leading to layoffs in the U.S. transportation and retail sectors, empty shelves, and an economic recession this summer.
Seroka said he believes it will take five to seven weeks for U.S. retailers to feel the impact of the reduced shipment volume, partly because companies had stockpiled goods before President Trump announced the tariff increase.
He said, "I don't think our store shelves will be completely empty when we go shopping. But if you're looking for a blue shirt, you might find eleven purple shirts and one blue shirt that doesn't fit your needs. So we will start to see fewer choices on the shelves simply because additional costs prevent us from obtaining various styles of merchandise. As for that remaining blue shirt on the shelf, you'll see prices rise."
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