Port of Los Angeles preps for cargo bump as shippers navigate global risks
Dive Insight:
In recent years, major shipping lines have avoided transiting the Suez Canal due to Houthi-led attacks on cargo vessels. But some carriers have slowly begun to resume transiting the waterway. For example, one of Maersk’s vessels successfully traversed the Red Sea, per a July advisory from the carrier.
Meanwhile, the Panama Canal has announced a series of draft restrictions through the summer as it seeks to take preventative measures in the event a drought occurs similar to the one it experienced in 2023. Its next draft restriction is set to take effect in early September.
While disruptions could drive more cargo to the West Coast, the Port of Los Angeles has already been seeing an uptick in volumes driven by shippers frontloading cargo, bringing forth an early peak season.
“What we saw this year was that many importers saw a window of opportunity from May, June and July to speed cargo into market with the temporary tariffs defined by Section 122 of the 1974 Trade Act, they were going to and set to expire on July 24th,” Seroka said.
President Donald Trump imposed a global 10% tariff based on Section 122 earlier this year before it expired last month.
The Port of Los Angeles processed 960,464 TEUs last month, the second-busiest July in the port’s history, Seroka said. Volumes were down 6% year over year but up 7.5% from the port’s five-year average for the month.
