Latest News

Tariffs are expected to end the near-record US container import streak in May

U.S. containers imports surged as companies raced against President Donald Trump's new tariffs. These include a 145% tax on goods imported from China. However, executives at two of the busiest ports in the country said that the trend was likely to reverse itself in May.

Descartes, a provider of supply chain technology, reported that April container imports increased 9.1% compared to a year ago, topping 2.4 million 20 foot equivalent units (TEUs), which is the second highest monthly total ever.

Imports of goods from China, which is the U.S.'s top maritime trading partner, increased by 6.2% in April and represented 33.4% all imports.

Trump imposed 145% tariffs against China on April 9, more than doubling their cost to U.S. consumer. This prompted retailers such as Walmart, Amazon.com, and other importers, like Walmart and Amazon.com, to suspend or cancel certain factory orders. He also imposed tariffs of 10% on other countries and warned that these rates could rise.

The Port of Los Angeles is the nation's leading gateway for goods from China and the United States' No.1 seaport complex. This week, import cargo will drop 35% year-over-year at the port. The United States' No. 1 seaport complex, and the nation's top gateway for Chinese goods, is expected drop by 35% this week.

Seroka said that the overall May ship traffic may decline by around 20%, as operators of large cargo ships cancel their scheduled voyages because demand is weak.

Trucks and trains are used to transport many of the goods entering the Port of Los Angeles or the adjacent Port of Long Beach across the United States mainland.

Port of Long Beach CEO Mario Cordero anticipates a 20% drop in May compared to a year earlier.

Descartes stated that the rapidly evolving U.S. Trade Policies and the retaliatory actions of U.S. Trading Partners as well as the ongoing instability in the Middle East, and Eastern Europe raises the risk of global supply chain disruption.

Descartes stated that "the full impact of tariffs - and the expiration of de minimis exemption on May 2 - has yet to reflect in import volumes from China", referring to the popular duty-free shipping for low-value shipments out of China and Hong Kong. (Reporting and editing by Nia William in Los Angeles, Lisa Baertlein from Los Angeles)

(source: Reuters)