Port of Long Beach Sees Record Numbers Amidst Trade Policy Uncertainty
Amidst a six-month window between U.S. tariff hikes, importers took advantage by surging boxes from East Asia into Southern California’s gateway ports in July. This surge propelled Port of Long Beach to record levels for the month, with terminals handling nearly 950,000 TEU worth of cargo. The influx included nearly 470,000 TEU in imports and about 380,000 TEU in empties. However, export containers, which account for a smaller portion of the port’s business, declined by 13 percent.
Port of Long Beach CEO Mario Cordero noted that the surge was likely a temporary response to policy incentives and may not significantly impact the port’s annual performance. Cordero stated, “Retailers are now seeing the arrival of goods that were purchased for lower costs during the temporary pause placed on tariffs and retaliatory tariffs earlier this year. Due to the ongoing uncertainty caused by shifting trade policies, our Supply Chain Information Highway digital tracking tool forecasts that cargo will be down about 10 percent in the second half of 2025, resulting in a flat year for volume.”
U.S. Container Imports Surge to Near-Record High
According to supply chain intelligence firm Descartes, U.S. container imports surged to a near-record high in July, with American ports bringing in 2.6 million TEU worth of foreign goods. This marked an 18 percent increase from the prior month and nearly matched the record set during the late-pandemic cargo surge in 2022. Imports from China played a significant role in driving the spike in volume, accounting for 35 percent of the total import TEU.
The current temporary pause in the Trump administration’s tariff negotiations with China means that Chinese goods can be imported at a relatively low 30 percent tariff rate. This tariff rate is set to expire on November 10 unless extended, providing retailers with an incentive to stock up on Chinese goods now while the tariff is favorable.
Overall, the surge in imports and record numbers at Port of Long Beach reflect the complex interplay between trade policies, market dynamics, and global supply chains. As the trade landscape continues to evolve, ports and importers must navigate uncertainty and adapt to changing conditions to ensure the smooth flow of goods and maintain efficient operations.