REGIONAL REPORT
MENTIONING THE T-WORD
It is impossible to talk about North America without discussing tariffs and their impact on cargo volumes. DLM takes a multi-faceted approach to analyse this major issue.
R
emoving politics from the equation, it remains clear that tariffs are impacting ports and terminals across North America – along with the companies who supply them with material handling equipment. At the time of writing, Drewry’s highly
regarded World Container Index (WCI) had fallen for the third consecutive week, following five weeks of gains. Drewry states that this decline is “a direct result of the low demand for US-bound cargo and is a sign that the recent surge in US imports, which occurred after the temporary halt of higher US tariffs, will not have the lasting impact we had initially expected”. The American Association of Port Authorities (AAPA) pulled no punches in its response to tariffs. “Tariffs are taxes,” stated Cary Davis, AAPA president and CEO.
“Though the port industry supports President Trump’s efforts to combat the flow of illicit drugs, tariffs will slow down our supply chains, tax American businesses and increase costs for hard-working citizens. Instead, we call on the administration and congress to thoughtfully pursue alternatives to achieving these policy goals and exempt items critical to national security from tariffs, including port equipment.” Like Drewry, Descartes Systems Group highlighted the scale of decline in its June Global Shipping Report for logistics and supply chain professionals. In May 2025, US container import volumes dropped after several months of growth, falling 9.7% from April and 7.2% year-over-year. Imports from China declined by 20.8% compared to April, marking the steepest monthly decline since March 2020 and by
The Port of San Diego
has adopted a strategy of diversification to weather the tariff storm.
28.5% compared to May 2024. Descartes also reported a shift in port dynamics in May, with east and gulf coast ports gaining market share over west coast ports. This is due to the west coast normally handling higher volumes of goods from China.
Port impacts The Port of Los Angeles is a great example of this decline. The port broke records in September last year, handling 954,706 Twenty- Foot Equivalent Units (TEUs), a 27% increase over the previous year. This marked the close of the busiest quarter ever at the port. Overall, 2024 was the port’s second busiest year in its 117-year history, processing more than 10.3 million container units, almost 20% more than in 2023. This year started strongly but, by June, tariffs
had started to bite – and the port was reporting declines. It processed 716,619 TEUs in May, 5% lower than the same month in 2024. After 10 straight months of year-on-year growth, overall cargo volume slowed due to the impact of tariffs on both imports and exports. “May marked our lowest monthly cargo output in over two years,” said Port of Los Angeles executive director Gene Seroka when announcing the figures. “While May volume is typically stronger than April as we approach our traditional peak season, our imports dropped 19% compared to last month. “Unless long-term, comprehensive trade
agreements are reached soon, we’ll likely see higher prices and less selection during the year-end holiday season,” Seroka added. “The uncertainty created by fast-changing tariff policies has caused hardships for consumers, businesses and labour.” The Northwest Seaport Alliance (NWSA)
painted a similar picture. NWSA manages the container, breakbulk, auto and some bulk terminals in Seattle and Tacoma. Full international imports decreased 21.2% May
xiv | August 2025 |
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