Port of Los Angeles Volumes Slide as Global Rates Retreat

Softening container rates and weaker cargo volumes at the nation’s busiest gateway underscore a cooling global trade environment, even as policy shifts and carrier consolidation reshape the competitive landscape.

The Port of Los Angeles processed 812,000 twenty-foot equivalent units (TEUs) in January, down 12% compared to the same month last year. The decline reflects ebbing trans-Pacific demand following a late 2025 peak season, when importers rushed shipments ahead of tariff deadlines set by the White House.

That earlier cargo surge has left inventories slightly elevated, contributing to a more cautious restocking cycle. Port Executive Director Gene Seroka noted that while U.S. trade policy continues to create uncertainty, consumer demand has remained resilient. Purchase orders placed several months in advance with Asian suppliers appear stable, offering a measure of optimism despite recent softness.

January import volumes totaled 421,594 loaded TEUs, a 13% year-over-year decline. Loaded exports dropped 8% to 104,297 TEUs. The port also handled 286,110 empty containers — a forward indicator of import activity — down 12% from a year ago.

Broader geopolitical tensions are adding another layer of volatility. Iran’s partial closure of the Strait of Hormuz amid rising U.S. military activity has heightened concerns over energy markets and global supply chains. The strategic waterway is critical for crude oil shipments from the Middle East to world markets, and any sustained disruption could ripple through transportation costs.

On the pricing front, spot rates mirrored the pullback in demand. According to Freightos, Asia–U.S. East Coast rates fell 12% in the latest week to about $3,000 per forty-foot equivalent unit (FEU), returning to early December levels before pre–Lunar New Year demand temporarily boosted volumes. The holiday period traditionally dampens trans-Pacific shipping as factories across China close for several weeks.

Rates on the Asia–Europe trades also declined. Asia–North Europe prices slipped 5% to roughly $2,400 per FEU, back to December benchmarks. Mediterranean rates fell 4% to about $3,600 per FEU, though they remain modestly above December levels.

Policy developments in Washington could further alter cost structures for U.S.-bound freight. The administration recently released a long-delayed Maritime Action Plan aimed at reviving domestic shipbuilding. Among its proposals are port fees ranging from one to twenty-five cents per kilo of freight arriving on foreign-built vessels. Analysts estimate the charges could translate to roughly $150 per FEU at the low end and as much as $3,750 per FEU at the highest tier — a potentially significant new expense for shippers. No timeline has been provided for implementation, and legislative progress has so far been limited.

Meanwhile, shifting trade patterns are encouraging carriers to reposition capacity. Freightos analyst Judah Levine said that ongoing trade tensions have prompted exporting nations to diversify beyond U.S. markets, fueling growth in non-U.S. trade lanes. Carriers have increasingly allocated vessels to routes such as Far East–West Africa, where demand is strengthening, while trimming some trans-Atlantic services.

Consolidation is also accelerating. Germany’s Hapag-Lloyd has agreed to acquire Israel-based Zim Integrated Shipping Services for $4.2 billion in one of the container sector’s largest recent deals. While the transaction would keep Hapag-Lloyd ranked fifth globally by capacity, adding tenth-ranked Zim would narrow the gap with China’s COSCO Shipping, the world’s fourth-largest carrier, pushing the combined fleet above 3 million TEUs.



The added scale is expected to strengthen Hapag-Lloyd’s position on the Far East–North America and trans-Atlantic trades, reinforcing how carriers are pursuing strategic growth amid volatile demand, geopolitical risk, and evolving regulatory pressures.

Source: www.freightwaves.com