The U.S. port industry is feeling the impact of recent tariff hikes, with cargo volumes plunging and costs of essential port equipment rising. From Los Angeles to Oakland, ports are grappling with disrupted supply chains and economic uncertainty.
At the Port of Los Angeles, inbound container shipments dropped by up to 30% in early May, a significant decline linked to the tariff increases. Gene Seroka, Executive Director of the Port of Los Angeles, highlighted the immediate effects on the workforce.
“Fewer containers mean less work on the waterfront,” Seroka said during a recent briefing. “The impact was felt almost immediately during that first week of May.”
The decrease in cargo has affected not only dockworkers but also truckers and warehouse employees who rely on the steady flow of goods. While April saw a temporary boost in container movements—up 9.5% compared to last year—this was attributed to importers rushing to get goods in before the tariffs took effect.
Neighboring ports are also experiencing declines. The Port of Long Beach expects a more than 10% drop in imports for May. “After moving the most containerized cargo of any American port in the first quarter, we are now anticipating a significant drop-off,” said Mario Cordero, CEO of the Port of Long Beach. “The effects will be felt beyond the docks.”
Further north, the Port of Oakland reported a 14.7% decrease in cargo volume from March to April, citing reduced export demand and ongoing trade instability.
Adding to the challenges is a proposal to impose tariffs of up to 100% on cranes, containers, chassis, and related port equipment imported from overseas. According to the American Association of Port Authorities (AAPA), this could cost U.S. ports an estimated $6.7 billion.
The AAPA has urged the government to delay implementing these tariffs until a domestic manufacturing industry can meet the demand. Currently, no U.S. companies produce ship-to-shore cranes, and ports rely heavily on imports. Of the 55 cranes on order by U.S. ports, 44 are being built overseas. Over the next decade, ports expect to need 151 more cranes, with many likely to be sourced internationally.
“American ports need these cranes now, but they simply cannot afford unexpected costs,” the AAPA stated. “They cannot back out of these purchases.”
Alternatives are limited, as options from other countries are scarce, and building a U.S. supply chain could take at least a decade. Additionally, construction materials like steel and aluminum have become more expensive due to tariffs.
Cary Davis, President and CEO of the AAPA, emphasized the urgency of the situation. “High tariffs on ship-to-shore cranes, without affordable alternatives, function as a crippling tax on port development and seriously threaten our nation’s ability to expand cargo movement,” he said.
As the port industry navigates these challenges, the broader implications for trade and employment remain a pressing concern.
