The Ports of Los Angeles (POLA) and Long Beach (POLB), America's two largest container gateways, reported robust April throughput figures that masked growing concerns about impending tariff impacts and global trade volatility.
Los Angeles: Record Growth With Underlying Weaknesses
POLA handled 842,806 twenty-foot equivalent units (TEUs) in April, marking a 9.4% year-over-year increase and ranking as the third-highest April volume in its history. The port has now recorded 10 consecutive months of growth.
Year-to-date totals reached 3,346,853 TEUs, up 6.2% from 2023. However, Executive Director Gene Seroka cautioned that April's performance reflected importers rushing shipments ahead of anticipated tariff implementations rather than sustainable demand growth.
Key Performance Indicators
Imports: April loaded imports rose 5% to 439,230 TEUs, with Seroka describing the activity as "a last push" before tariffs take effect.
Exports: Outbound containers fell 3% to 128,394 TEUs, extending a five-month decline that port officials attribute to retaliatory tariffs affecting agricultural and manufacturing sectors.
Empty Containers: Empty container movements surged 25% to 275,183 TEUs, highlighting persistent trade imbalances.
Market Uncertainties
"We've seen 55 trade policy changes since January," Seroka noted, adding that volatility has impacted financial markets, consumer sentiment, and business planning. Preliminary May data shows import volumes down over 30%, with 17 vessel cancellations already recorded.
Long Beach: Historic Highs With Similar Concerns
POLB achieved its strongest April on record with 867,943 TEUs, a 15.6% increase from 2023. The port's year-to-date volume stands at 3,403,069 TEUs, up 23.6%.
Performance Breakdown
Imports: Loaded imports grew 15.1% to 419,828 TEUs
Exports: Outbound containers declined 4.5% to 93,842 TEUs
Empty Containers: Empty movements jumped 23% to 353,824 TEUs
CEO Mario Cordero projected May imports would drop over 10%, warning that "consumers may soon find reduced product selection, higher prices, and potential employment market impacts."
Market Analysis: Short-Term Gains vs. Structural Challenges
The twin ports' April performance reveals several critical trade dynamics:
- Growth primarily driven by tariff-avoidance strategies rather than organic demand
- Persistent export weakness signaling competitive challenges in key U.S. sectors
- Record empty container returns reflecting structural trade imbalances
- Policy uncertainty creating planning difficulties across supply chains
Both ports anticipate continued volatility through mid-year as trade policy developments unfold. The April surge appears to have pulled forward demand that might otherwise have materialized later in 2024, potentially creating softer summer volumes.