The first domino has tipped: a 6.4% drop in cargo container movement at the San Pedro Bay port complex.
The Port of Los Angeles had 716,619 containers processed in May, a drop by about 5% from the prior year, while the neighboring Port of Long Beach’s 639,160 containers represented an 8% drop. It was the lowest volume of cargo handled by either port since the first half of 2023.
May’s numbers more dramatically bucked the usual trend of the month, kicking off a wave of cargo movement that typically improves upon March and April volumes. From April to May, volumes dropped 19% and 26%, respectively, at L.A. and Long Beach.
The cause? Tariffs.
“Unless long-term, comprehensive trade agreements are reached soon, we’ll likely see higher prices and less selection during the year-end holiday season,” Gene Seroka, executive director of the Port of L.A., said in his monthly media briefing. “The uncertainty created by fast-changing tariff policies has caused hardships for consumers, businesses and labor.”
Imports vs. exports
The most meaningful statistic to pull out of these numbers is, of course, imports.
Dockworkers at L.A. handled 355,950 loaded import containers in May, while those at Long Beach moved 299,116. These were drops of 9% and 13%, respectively. Loaded exports also fell by 5% and nearly 19%, respectively.
One figure did climb: the number of empty containers that were processed in some way through the ports, with L.A. processing 2% more and Long Beach 3.2% more.
The ports do remain up on the year, with L.A. and Long Beach combining for more than 8.1 million containers moved – up by 10.2% year-over-year. Port leaders have shown some hope that numbers will rebound in the form of later starts to what is typically the busy season for importers.
“We remain cautiously optimistic that import cargo will rebound at the end of June and into July just in time for the peak shipping season, when retailers stock the shelves with back-to-school supplies and begin preparations for the winter holidays,” said Port of Long Beach Chief Executive Mario Cordero said.
Cargo dwell times
One bit of stability manifested in the form of cargo dwell times, which is the period between when containers are offloaded and when they’re loaded onto trucks or rail cars to leave the ports.
Truck-bound cargo had dwell times of 2.95 days in May – essentially equal to April’s times and just hours longer than in May 2024. Meanwhile, rail-bound cargo had dwell times of 4.7 days in May, equal to April and a nearly two-day improvement from last May.
“As global trade volumes continue to ebb and flow, we are pleased to point out that marine terminals in the Ports of Los Angeles and Long Beach are maintaining efficient and consistent cargo movement and supply chains resiliency,” said Natasha Villa, external affairs manager of the Pacific Merchant Shipping Association. “Our marine terminals are prepared for the variables in trade volumes on the horizon, and this latest dwell time data demonstrates the terminals’ stability and reliability amidst ongoing market shifts.”