Plummeting Cargo Volumes from Asia Set to Hit Los Angeles Port

The Port of Los Angeles is bracing for a 35% decline in cargo volumes from Asia due to tariffs and halted shipments by major U.S. retailers. Executive Director Gene Seroka highlighted the impact of the trade war with China, predicting import volumes could fall by at least 10% in the year's second half.

The Port of Los Angeles anticipates a dramatic 35% plunge in cargo from Asia next week, as shared by its Executive Director, Gene Seroka, during an interview with CNBC on Tuesday. According to Seroka, this steep decline stems mainly from several American retailers halting shipments from China amid ongoing tariff disputes.

Seroka noted that these halted shipments, primarily due to the trade tensions, account for approximately 45% of Los Angeles's shipping traffic. Until a resolution is reached with China, he expects the export volume to remain low, with only essential commodities being sent.

Forecasting further into the year, Seroka expressed concerns over a significant drop in imports at the Port of Los Angeles by at least 10% in the latter half of the year. The ports of Los Angeles and Long Beach are at the forefront of the trade conflict, serving as key entry points for Chinese imports, which are now facing substantial risk.

(With inputs from agencies.)