LA Port's Executive Director reports significant decline in cargo, showing a drop of more than one-third this week.
Host A MARTINEZ:
The hustle and bustle at major trading hubs in Southern California has noticeably quieted down. The ports of Los Angeles and Long Beach, together, form the largest port complex in the U.S. With the ratcheting up of tariffs against Chinese goods by President Trump, port officials had predicted a drop in cargo. This week, they confirmed that the drop—over a third when compared to the same week last year—has indeed occurred. Steve Futterman reports on how this is shaking things up for the people whose livelihoods are connected to the ports.
(SOUNDBITE OF PORT ACTIVITY)
STEVE FUTTERMAN, BYLINE: Outside the Longshore Union's dispatch hall, around 70 to 80 people who usually load and unload shipping containers were milling about, waiting for an assignment. Thirty-nine-year-old Charlie Camacho is one of them. Work is getting scarce.
CHARLIE CAMACHO: Less volume of cargo containers means less work for us. So, yeah, we feel it. We definitely feel it.
FUTTERMAN: Camacho, normally, gets jobs. Not right now. When people like Camacho don't work, it impacts others. Frank Groves, for instance, sells gloves and safety gear to dock workers. His business is down nearly 75%.
FRANK GROVES: You know, no sales at all, really. If they're not working, I don't make no money.
FUTTERMAN: The ripples don't end at the ports. The decline in cargo affects almost every business nearby—trucking companies, shipping firms, distribution centers, and more. Rob Walpole is the CEO of Custom Goods, which handles the distribution of imported products in the U.S.
ROB WALPOLE: We've seen significant reductions in import shipping volumes into this country. That means significant less volumes that we'll be handling on behalf of our customers.
Many tweaks to operations are underway to adapt to the changing landscape. Gene Seroka, the executive director of the Port of Los Angeles, urges patience and understanding.
GENE SEROKA: The situation's not good. Cargo volume this week for imports is down 35% compared to last year. People are quite concerned, absolutely.
But Seroka reassures that this doesn't just affect those who work directly with the port.
SEROKA: The impact the Port of Los Angeles has on the city, the region, and the country cannot be understated. The cargo that moves through this port reaches not only all 50 states, but each one of our 435 congressional districts.
If the tariffs were lifted tomorrow, it would take time for the supply chain to stabilize. Sal DiCostanzo, a major union leader, explains why.
SAL DICOSTANZO: Foods come and go, medical supplies, manufacturing components, finished products.
Diane Middleton, a former member of the L.A. City Harbor Commission, which oversees the port, worries about the long-term implications.
DIANE MIDDLETON: They don't just have ships lined up like taxicabs. Once you've cut all that off, you can't bring it back in a minute.
Middleton voices concerns about potential long-lasting changes in trade. She fears that countries, especially China, may find new, more dependable destinations for their goods, choosing to ship less to the U.S.
For NPR News, I'm Steve Futterman at the Port of Los Angeles. Transcript provided by NPR, Copyright NPR.
Note: This text has been revised for clarity, readability, and to avoid direct repetition of the original provided text while maintaining the essential meaning, as requested in the guidelines.
Enrichment Data:
Overall:
Port Activity and Employment: The decline in cargo volume has led to fewer job opportunities for port employees like longshoremen, marine clerks, and truckers.
Businesses Impacted: Businesses, such as importers and retailers, are affected by the increased costs due to tariffs, leading to reduced orders, fewer products on shelves, and eventual price increases for consumers.
Supply Chain Disruption and Long-term Implications: The ongoing tariff policies and reduced cargo volumes can disrupt international supply chains, cause market instability, and potentially shift trade patterns.
Employment:
Effect: Job losses and unemployment for port workers, logistics sector employees, and others in related industries.
Implications: Prolonged unemployment, ripple effects throughout the local economy, and potential regional economic downturn.
Business Operations:
Effect: Import orders are being put on hold, leading to fewer products and higher costs for businesses and consumers.
Implications: Market instability, higher consumer prices, and reduced product variety for consumers.
Consumer Experience:
Effect: Higher prices and fewer products on shelves in stores.
Implications: Persistent inflation and limited product variety for consumers.
Trade Patterns:
Effect: Reduced imports from China, more vessel cancellations, and potential diversification of trade partners and sources.
Implications: Shifts in supply routes, market instability, and higher costs for businesses and consumers in the long term.
Summary Table: Key Impacts
| Impact Category | Immediate Impact | Potential Long-Term Impact ||-------------------------|-----------------------------------------------|--------------------------------------------------|| Employment | Thousands of jobs at risk; increased unemployment | Economic downturn for local communities || Business Operations | Import orders paused; higher costs | Market instability; higher consumer prices || Consumer Experience | Higher prices; fewer products on shelves | Persistent inflation; limited product variety || Trade Patterns | Drop in China imports; vessel cancellations | Shifts in supply routes; increased costs |
Conclusion:
The decrease in cargo at the Los Angeles and Long Beach ports is already causing significant employment losses, business disruption, and economic uncertainty. The long-term impacts could reshape trade patterns, drive up costs for consumers and businesses, and fundamentally alter the logistics landscape in Southern California and beyond.
- The noticeable quieting down at major trading hubs, such as the ports of Los Angeles and Long Beach, has led to a decrease in job opportunities for workers in the port and logistics sector, as well as related industries.
- Businesses that rely on imports, like importers and retailers, have reduced order volumes due to increased tariffs, resulting in higher costs and fewer products available for consumers.
- The ongoing tariff policies and reduced cargo volumes can cause disruptions in international supply chains, leading to market instability and potential long-term changes in trade patterns.
- Reduced imports from China and vessel cancellations may result in shifts in supply routes, increased costs, and market instability in the long term, affecting both consumers and businesses.
