Shipping containers at Pier J at the Port of Long Beach wait for processing in Long Beach, California, U.S., April 4, 2018. REUTERS/Bob Riha Jr.
LOS ANGELES, June 12 (Reuters) – The Los Angeles and Long Beach port complex – the No. 1 hub for U.S. ocean trade with China – processed 6.3% fewer inbound cargo containers in May, signaling that the escalating U.S.-China trade war is roiling business activity.
Exports from the California seaport complex, the nation’s busiest, fell 7.4% year-on-year, the two ports said.
U.S. companies ranging from retailers to manufacturers stockpiled goods before Washington and Beijing began slapping tariffs on imports last year. The May decline comes at a time when importers are typically ramping up for the peak shipping season that brings in goods for the winter holidays.
“Escalating tariffs have pushed retailers to order goods early, warehouses are brimming with inventory as a result, and in response, ocean carriers are managing their vessels to deal with reduced demand,” said Mario Cordero, executive director at the Port of Long Beach, where imports fell 19.5% versus May 2018, more than offsetting a 5.5% increase in imports at the larger Port of Los Angeles.
The Trump administration escalated the trade conflict in May, announcing a tariff hike on $200 billion of Chinese products. China retaliated with tariffs on $60 billion of U.S. goods.
President Donald Trump has also threatened to hit China with tariffs on “at least” a further $300 billion worth of Chinese goods.
That threat may have spawned another trade bump.
China’s exports unexpectedly returned to growth in May – rising 1.1% and prompting speculation that Chinese exporters rushed out shipments to avoid the new U.S. tariffs.
It typically takes about 10 to 14 days for cargo ships to make the trip directly from China to the U.S. West Coast. Many ships call at multiple ports before crossing the ocean, adding weeks to the trip.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Peter Cooney)
March witnessed an upswing in trade at the Port of Long Beach, marking the seventh month in a row of year-over-year cargo growth. Last month, dockworkers and terminal operators handled...
Europe’s busiest port, the Port of Rotterdam, saw a decline of 1.4% in its total throughput in the first quarter of 2024 compared to last year. In total, the port...
Colonel’s Island Terminal at the Port of Brunswick in Georgia has set a new record in March, handling 77,236 units of Roll-on/Roll-off (Ro/Ro) cargo. This figure represents a 21 percent...
April 18, 2024
Total Views: 535
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.