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Peak Season Hits Early, California Port Cargo Surges
Container volumes at California’s two biggest ports, Los Angeles and Long Beach, jumped 8.4% in June compared to a year ago, as retailers and manufacturers scrambled to build a buffer of inventory in anticipation of looming new tariffs. The rapid acceleration of imports is set against a backdrop of a tense trade showdown between the U.S. and China.
Companies believe the costs of increasing imports early will be offset by higher costs from tariffs the U.S. intends to impose on billions of dollars in Chinese goods. The risk is that companies could face an overstock situation if fall demand is not what they project.
Container volume reached 767,059 20-foot equivalent units at the two neighboring SoCal ports, which is the biggest U.S. gateway for seaborne trade. Inbound volumes at the Port of Oakland, were also strong, with container imports growing 8.7% year-over-year in June.
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- ◦Economy
