L.A. port traffic rises in April despite trade disruption, higher fuel costs
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The Port of Los Angeles recorded its second-busiest April on record, despite the war in Iran, a related rise in shipping fuel costs and continued trade uncertainty.
The port processed more than 890,00 container units last month, 5.7% higher than a year ago. That was driven by a strong growth in imports, which totaled about 460,000 20-foot container units, or TEUs, an increase of 5% compared with a year ago and 21% higher than March.
“And what’s driving this, generally speaking, is the American consumer, still resilient, still spending,” Gene Seroka, port executive director, said during a news conference. “And based on what we’re seeing in Asia, the next wave of imports — from back-to-school to early holiday merchandise — is already beginning to build.”
The solid numbers brought the year-to-date trade figures to 3.28 million TEUs, about 2% over its five-year average and 2% below last year’s pace, which was abnormally high earlier last year as importers tried to get ahead of President Trump’s tariffs.
A divided three-judge panel at the U.S. Court of International Trade in Manhattan on Thursday granted a request by a group of small businesses and two dozen mostly Democrat-led states to vacate the tariffs.
More than 95% of the port’s trade is with Asian partners, with China, Japan, Korea, Taiwan, Vietnam the top five countries, Seroka said.
Still, uncertainty over tariffs has beset international trade.
Last week, the 10% global tariffs that President Trump imposed after his “Liberation Day” tariffs were struck down in February, also were declared unlawful by a federal judge. Trump imposed the duties under Section 122 of the Trade Act of 1974, which had never previously been invoked.
It wasn’t immediately clear what the ruling would mean for importers that had been paying the levies. The Justice Department could challenge the trade court’s latest ruling by taking the case to the U.S. Court of Appeals.
While imports have continued to hold up, the tariffs have affected export markets. The number of outbound TEUs fell 0.5% to about 128,000 in April.
“Tariff‑rich environments will continue, and the uncertainty around how those tariffs are deployed will also continue,” said Katherine Tai, former U.S. trade representative under President Biden, who spoke at the briefing. “It’s a deeply disruptive time.”
Shipping companies are imposing fuel surcharges and avoiding expensive routes as the cost for container ship fuel rises amid the war in Iran.
Meanwhile, cargo ships that call on the ports of Los Angeles and Long Beach are facing much higher fuel costs due to the Iran war’s closure of the Strait of Hormuz.
The cost of shipping fuel at the twin ports has risen sharply and is close to 20% higher than at other major ports in the U.S. and worldwide — which adds up quickly as ships need the equivalent of millions of gallons of fuel to fill up.
Shippers are trying to reduce fuel consumption and avoid expensive routes, but much of that extra cost is expected to show up in the prices of the products that pass through the ports every month in hundreds of thousands of containers.
Times staff writer Caroline Petrow-Cohen contributed to this report.
