Near-record US container import streak expected to snap in May due to tariffs
April container imports jumped 9.1% from a year earlier to top 2.4 million 20-foot equivalent units (TEUs), the second-highest on record for the month, supply chain technology provider Descartes (DSG.TO), opens new tab, said on Thursday.
Imports from China, the top U.S. maritime trade partner, jumped 6.2% and accounted for 33.4% of all imports in April.
Trump on April 9 imposed punishing 145% tariffs on China, more than doubling the cost of goods from the country for U.S. consumers and prompting retailers like Walmart (WMT.N), opens new tab, Amazon.com (AMZN.O), opens new tab and other importers to pause or cancel some factory orders. He has also imposed 10% tariffs on many other nations and said those rates could go higher.
Import cargo at the Port of Los Angeles, the No. 1 U.S. seaport complex and the nation's leading gateway for goods from China, is expected to drop 35% year-over-year this week, said Gene Seroka, the port's executive director.
Overall May ship traffic could decline by roughly 20% as operators of hulking cargo vessels cancel scheduled voyages due to soft demand, Seroka added.
Many of the goods that enter the Port of Los Angeles and adjacent Port of Long Beach fan out across the mainland United States via truck and train.
Port of Long Beach CEO Mario Cordero expects May volume to fall 20% versus a year ago.
Quickly evolving U.S. trade policies and retaliatory measures from U.S. trading partners as well as ongoing instability in the Middle East and Eastern Europe are raising the risk for global supply chain disruption, Descartes said.
"The full impact of tariffs — and the May 2 expiration of the de minimis exemption — has yet to be reflected in import volumes from China," Descartes said, referring to popular duty-free access for low-value shipments from China and Hong Kong.
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