Xinhua
22 Jul 2025, 15:15 GMT+10
With tariff rates set to climb again and trade negotiations stalled, industry observers anticipate that the divide between America's mega hubs and its smaller ports will widen before conditions stabilize, leaving many coastal communities waiting for cargo that may not return.
SACRAMENTO, United States, July 21 (Xinhua) -- A race to beat the next round of U.S. tariffs is reshaping shipping routes, increasing business at the nation's largest gateway while starving dozens of secondary ports of cargo, jobs, and revenue, CNBC reported Monday.
The latest Port data showed the Port of Los Angeles processed 892,340 twenty-foot equivalent units (TEUs) in June. The tally set a monthly record and rose eight percent from a year earlier.
At the Port of Los Angeles, Executive Director Gene Seroka told CNBC the spike reflected importers pulling holiday goods forward so they clear customs before duties rise on Aug. 1. He expected volumes to taper once the additional costs take hold.
However, much of this traffic in the country's biggest port appeared to be rerouted from smaller rivals. In Northern California, the Port of Oakland processed 168,460 TEUs in June, 10.1 percent fewer than in May and 12.8 percent below the same month last year. Port officials characterized the slide as a market recalibration caused by tariff uncertainty rather than a seasonal lull.
A July review by logistics firm ITS Logistics found that operations were stable at most U.S. gateways, but smaller ports were under strain as shippers consolidated volumes at major hubs to reduce risk amid shifting trade policies. The report predicted the stop-start pattern could persist through the second half of 2025.
Separately, in the Pacific Northwest, cargo moving through the Seattle-Tacoma alliance decreased by about 30 percent in May after new duties were announced, regional media reported, resulting in reduced hours for waterfront and trucking workers.
Analysts warned that the reshuffle threatened regional economies relying on balanced import-export flows. Oakland estimated that its terminals supported about 98,000 jobs and generated 174 billion U.S. dollars in economic activity.
Even Port of Los Angeles cautioned that the current boom may be short-lived. Port projections showed that two out of every 10 sailings were canceled in May, and officials expected a slowdown after the August deadline set by U.S. President Donald Trump's administration.
Officials said a prolonged downturn would hurt farmers first, as roughly half of Oakland's boxes transport refrigerated meat, citrus, and nuts bound for Asian markets.
With tariff rates set to climb again and trade negotiations stalled, industry observers anticipate that the divide between America's mega hubs and its smaller ports will widen before conditions stabilize, leaving many coastal communities waiting for cargo that may not return.
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