Imports at Southern California Ports Fell Sharply Last Month
13 June 2019 - 1:11AM
Dow Jones News
By Costas Paris
Trans-Pacific trade tensions weighed on volumes at Southern
California ports in May, prompting warnings that the yearlong
tariff spat between the U.S. and China is rattling supply
chains.
Combined inbound loaded containers at the ports of Los Angeles
and Long Beach, the neighboring ports that comprise the largest
U.S. gateway for seaborne trade, fell 6.3% last month from a year
ago. The ports handled 48,256 fewer loaded import containers than
they did in the same month last year.
Combined exports at the two ports also fell 7.4%.
The decline, in a month when maritime operators usually are
gearing up for the year's peak seasonal shipping volumes, suggested
that importers are pausing orders for goods after accelerating
imports for several months to get ahead of rising tariffs launched
by Washington and Beijing.
"Escalating tariffs pushed retailers to order early, warehouses
are brimming with inventory and carriers are managing their vessels
to deal with reduced demand," said Mario Cordero, executive
director of the Port of Long Beach, where loaded import container
volume fell 19.5% last month from same month a year ago.
"We are hopeful Washington and Beijing can resolve their
differences before we see long-term changes to the supply chain
that impact jobs in both nations," Mr. Cordero said in a
statement.
Last month, the Trump administration raised tariffs on $200
billion of Chinese goods, including furniture and automotive parts,
to 25%. China responded with tariffs on $60 billion in U.S. goods.
Washington has also threatened to impose levies on all remaining
Chinese exports worth around $300 billion.
The Global Port Tracker report by the National Retail Federation
and Hackett Associates released this week estimated that container
imports into major U.S. ports overall rose 3% in May. The retail
group also scaled back its projection for imports in the coming
months, saying U.S. ports would see a combined 900,000 fewer
inbound containers in June, July and August than had been forecast
in May.
"With a major tariff increase already announced and the
possibility that tariffs could be imposed on nearly all goods and
inputs from China, retailers are continuing to stock up while they
can to protect their customers as much as possible against the
price increases that will follow," NRF Vice President for Supply
Chain and Customs Policy Jonathan Gold said in a statement.
Write to Costas Paris at costas.paris@wsj.com
(END) Dow Jones Newswires
June 12, 2019 10:56 ET (14:56 GMT)
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