Tariff Pause Fuels Surge at LA-Long Beach Ports

The nation’s busiest port complex — Los Angeles and Long Beach — notched one of its strongest peak-season performances on record in August as shippers rushed to take advantage of a temporary pause in U.S. tariffs on China.

The Port of Long Beach reported processing 901,846 twenty-foot equivalent units (TEUs) last month, marking its second-busiest August and sixth-highest month in its 114-year history. While the total was down 1.3% from the port’s all-time monthly record set in 2024, year-to-date volumes reached 6.59 million TEUs, up 8.3% compared with the same period last year.

Long Beach imports fell 3.6% to 440,318 TEUs, and exports dropped 8.3% to 95,960 TEUs. However, empty container shipments — often viewed as a signal of future import demand — rose 3.7% to 365,567 TEUs.

“Shifting trade policies continue to create uncertainty for businesses and consumers,” said Port of Long Beach Chief Executive Mario Cordero. “But our Supply Chain Information Highway digital tracker shows peak shipping season is on pace with last year as retailers prepare for the holidays.”

Neighboring Port of Los Angeles posted similarly robust results, handling 958,355 TEUs in August — just shy of last year’s record. Combined, Los Angeles moved nearly 2 million containers across July and August, which Executive Director Gene Seroka called the best two-month stretch of any port in the Western Hemisphere.

Seroka noted that importers have been accelerating shipments both to meet holiday demand and to guard against further changes in trade policy. Loaded imports in August totaled 504,514 TEUs, down just 1% year-on-year, while exports rose 5% to 127,379 TEUs. The port also saw significant efficiency gains: container dwell times dropped below three days for trucks and under eight days for rail.

Through the first eight months of 2025, Los Angeles processed 6.93 million TEUs, up 4.5% year-on-year.

The strong summer flows follow a 90-day tariff pause between Washington and Beijing that expired in early August, immediately replaced with another identical truce carrying 30% baseline tariffs through November. The pause has provided breathing room for both supply chains and U.S. Customs systems, which had been strained by policy changes.

Still, port officials cautioned that momentum may fade. “Looking forward, I expect container volumes to ease through the rest of 2025,” Seroka said. “Much of the holiday cargo is already here, and economic headwinds like slower job growth and persistent inflation are making importers and consumers more cautious.”

Further uncertainty looms from new ship fees set to take effect in October on China-owned or -operated vessels. Seroka said the added costs could range from $175 to $300 per container, though he expects smaller ports will feel the impact more than Los Angeles.

Meanwhile, the container supply chain continues to face pressure from the ongoing downturn in trucking, with several drayage companies — including TGS Logistics and GSC Logistics — shutting down in recent months.

Despite those challenges, Southern California’s twin gateways remain on pace for one of their busiest years ever, underscoring the region’s critical role in U.S.-Asia trade even as global shipping adapts to shifting tariffs, costs, and consumer demand.

Source: www.freightwaves.com