According to the Port of Los Angeles, import volumes are expected to drop by 35% starting the week of May 5th. Gene Seroka, the port’s executive director, said this was due to the impact of tariffs on Chinese goods and explained that many large U.S. retailers have halted shipments from China in response to the tariffs.

Shipments from China account for roughly 45% of the Port of LA’s business, and while some businesses are turning to Southeast Asia to fill the vessels, those goods are unable to compensate for the shortfall. “It’s my prediction that in two weeks’ time, arrivals will drop by 35 per cent as essentially all shipments out of China for major retailers and manufacturers have ceased, and cargo coming out of Southeast Asia locations is much softer than normal,” Seroka said.

Seroka emphasized that until a new trade framework is established, the volume of goods from China will remain low. He expects that U.S. retailers have about five to seven weeks of inventory, after which there will be fewer product choices, and higher prices are likely for consumers.

Seroka said imports at the Port of Los Angeles are projected to decline by at least 10% in the second half of this year.

Source: CNBC