The Port of Los Angeles witnessed a cargo increase exceeding 15% in November compared to the same period in the previous year, amidst preparations for an uncertain 2025. Concurrently, the Port of Long Beach recorded its most active November to date. Gene Seroka, the executive director of the Port of Los Angeles, attributes this surge to robust consumer expenditure, anticipatory actions by companies in light of Donald Trump's proposed tariffs, and disruptions in the Red Sea rerouting more shipments to the West Coast. Additionally, the potential of labor disputes on the East and Gulf Coasts, with a looming strike in January, has contributed to this scenario.
Regarding the implications of the proposed tariffs, Seroka highlighted a "period of front-loading" of goods in anticipation, which might lead to a downturn in port volumes post-enactment. "The concern and unpredictability surrounding tariffs will likely dominate our discussions around global shipping to start 2025," he remarked. Furthermore, the prospect of a labor stoppage, following a temporary resolution of a three-day strike in October, poses another challenge. Without a new agreement by January 15, approximately 45,000 dockworkers might strike, impacting the global supply chain and potentially increasing cargo volumes to Southern California. Seroka assures that the Port of Los Angeles is equipped to handle additional cargo if necessary.
Source: LA IST