RANCHO MIRAGE, Calif. -- The downturn in cargo volumes may be muting any market impact of U.S. efforts to collect fees on Chinese-built and -operated ocean vessels, a panelist recently said at the Western Cargo Conference.
RANCHO MIRAGE, Calif. -- As increased trade enforcement, the federal government shutdown and efforts to hunt down counterfeit goods and illegal drugs dominate today’s headlines, so are these circumstances impacting the ports on the West Coast, according to panelists at last week’s Western Cargo Conference.
The Port of Los Angeles could experience one last import surge ahead of the Aug. 1 deadline for the White House's potential rate increases on its reciprocal tariffs, port Executive Director Gene Seroka said during the port's monthly cargo briefing.
The National Customs Brokers & Forwarders Association of America and dozens of state and national-level trade groups representing shippers have signed a letter warning the heads of multiple federal agencies of potential supply chain disruptions that could result should tariff changes proceed as planned.
Volumes of imported goods from China -- particularly those that would have been eligible for de minimis -- are likely to fall in the coming months, according to Gene Seroka, executive director for the Port of Los Angeles. But he said it's unclear how much they will fall, and when.
As reciprocal tariffs against imports from China and Hong Kong fall from 125% to 10% for 90 days as the U.S. and China seek to hash out a trade deal (see 2505120006), so are Southern California port volumes and trans-Pacific freight rates reflected the volatility seen in the trade space.
Elevated import volumes at major U.S. ports could persist through this spring "amid continuing tariff turmoil" before volumes face potential year-over-year drops over the summer, according to the National Retail Federation and Hackett Associates.
The head of the American Apparel and Footwear Association is urging the International Longshoremen's Association (ILA) to continue negotiating with the U.S. Maritime Alliance (USMX) to reach a labor agreement before the current one expires Jan. 15.
The possibility of a double whammy come January consisting of a strike at East and Gulf coast ports and the implementation of President-elect Donald Trump's proposed tariffs (see 2411250034) is making shippers nervous, with the National Retail Federation saying that the scenarios could result in a "continued surge in imports through next spring."
The Federal Maritime Commission is asking the parties to a West Coast ocean shipping and port agreement to provide more information about their alliance before an updated version takes effect, it said in a notice released this week.