Port of LA sees record freight in trade war whipsaw to beat tariffs

Los Angeles Port reported an increase in container traffic, which is an increase in the ocean load, which is defined by port managers as a tariff fpsia effect, in June, in June, a competing to overcome a termination date for President Trump’s trade taxes, especially Chinese goods tariffs.

In June, containers filled with holiday season and consumer supply products in Los Angeles Port, a total of 892,340 equivalent units (TEU) were processed. The increase in containers was no surprise after President Trump reduced the 145% tariff to Chinese goods to 45%. The deadline for tariff negotiations with China is now set for 12 August. An increase in the US production orders from China during the pause increased China’s surplus to $ 114.7 billion last month.

The port officials stressed that the increase in the load should not be called a fluctuation in recent comments, but the port officials stressed that the increase in the load should not be called a fluctuation, and that the June figures were repeated with a 8% development compared to last year. La Port of La Executive Director Gene Seroka, more than anything, the monthly data of the tariff fipsaw emphasized the effect, he said. Imports slowed down significantly in May and continued to fall in the first half of June.

“Change means changing volume and more uncertainty at La port,” Seroka said. “When we look at August, if everything is now holding in our way, I expect the volume to be facilitated because of these new tariffs,” he said.

Seroka, year -end holiday cargo orders should be already, he said. “At this point for the end of this year, it is too late to try to negotiate orders,” he said.

For importers, even in the trading war pause, the cost of assembly tariffs has been important for the work.

Seven Houseware President Bobby Djavaheri said that during a monthly container update call hosted by Los Angeles Port to CNBC, the layer of Chinese tariffs and stainless steel tariffs said that the company has increased the tariff bill paid to a great extent.

“Before the tariffs, a load will cost a cost between $ 1,500 to 2,000. Now is between 40,000-50,000 dollars.” He said.

Mike Short, Head of Global Load Transmission Ch RobinsonEven in the big June issues in the harbor, some transporters reduce their import volumes and bring basic products such as return to school.

“Others accelerated posts to overcome the tariff deadline dates from Southeast Asia, and many of them stuck to the standard most intensive season programs by taking the waiting and see approach.” He said. “Although we have approached the traditional retail peak season for the ocean, many of our customers are in stocks and extremely selective and strategic, but it is not possible to see the traditional most intense volumes of the sector by bringing only basic products to import.” He said.

Last week, Trump published letters covering new tariffs that he plans to place in several Asian countries, while recently he made a preliminary trade agreement with Vietnam, which brings up to 30%tariffs to many products.

Short, deadline extensions provide about one month of breath, while most of the an average of 20-30 days of transition time for ocean delivery is not enough time, he said. East Coast travel time can be longer. For companies that need to bring the product but do not secure the ocean load, more expensive air load is the only option.

Josh Allen, the CCO of the logistics, said that the procurement landscape has changed and the supply chain and logistics professionals are now accused of creating new ways to carry products from manufacturing places to the last markets. When a company’s production base is changed to a different country, the travel time in the ocean may be longer and the US port target may be different. Allen, “We watch these changes in real time and answer these changes.” He said. The authority added that although there was a record for La’s port in June, the wider trade collapse helps to navigate in changes. “The logistics industry can work and heal because demand is depressed,” he said.

Kim Vaccarella, the founder and CEO of the fashion and accessory company Bogg, has started to diversify the production of his company in Vietnam to balance his company’s tariffs in China, but all machines, product molds and raw materials continue to come from China. Vaccarella said, “We narrowed the production of our bags from two from four.” He said. “Initially, we cut our manufacturing by 50%, but now we have added some orders back because we produced two bags, but not all.”

President Trump’s trade agreement with Vietnam is still not official, and even if they are finished in another country like Vietnam, the first language in the agreement, referring to the products that start a production journey in China.

Bogg temporarily increased the prices in April before pause Trump’s tariff programs, but the original pricing was old. Vaccarella said, “Because of all uncertainty, everything is in the air.” He said. He continued: “After returning to prices in April, we announced that we will make a decision on prices in July, but we still do not have a clear picture.”