- Port of LA records busiest June ever as shippers rush to beat Trump’s tariff deadlines.
- Tariff uncertainty fuels pricing pressure, sourcing shifts, and strategic inventory moves.
- Importers face steep cost increases and supply chain disruptions despite temporary trade pauses.
Amid looming tariff hikes on Chinese goods, the Port of Los Angeles has reported its busiest June in its 117-year history. As President Trump sets new deadlines for tariff increases—potentially raising duties on Chinese imports to 145%—importers have rushed to bring in goods ahead of a mid-August deadline. The result: a total of 892,340 twenty-foot equivalent units (TEUs) processed in June, a figure driven by holiday season inventory and consumer product replenishment, according to CNBC.
The Tariff Whipsaw Effect
Port Executive Director Gene Seroka described the increase in ocean freight as a direct response to fluctuating trade policies—a “tariff whipsaw effect.” He explained that while imports had slowed significantly in May and early June, volumes spiked ahead of tariff hikes, then are expected to ease once the new trade taxes come into effect.
“If the tariffs hold as expected, we’ll likely see volume fall off from August to November,” Seroka said, pointing to National Retail Federation forecasts of a double-digit drop in cargo volume during that period.
Importers Bear the Brunt of Costs
The cost impact of rising tariffs is hitting U.S. businesses hard. Bobby Djavaheri, president of Yedi Houseware, noted that shipping costs have surged from $1,500–$2,000 per container to $40,000–$50,000 for products like air fryers and stainless-steel kitchen goods.
While some companies are accelerating shipments, others are only bringing in essential goods. Mike Short, president of global freight forwarding at C.H. Robinson, said many of the firm’s 7,500 retail clients are being “highly selective and strategic,” focusing on necessities like back-to-school supplies and holding off on broader holiday orders.
Long Beach Terminal Expansion and Manufacturing Shifts
At the Port of Long Beach, the International Transportation Service (ITS) terminal is undergoing a $365 million expansion to accommodate some of the world’s largest container ships. The port’s efforts to modernize coincide with broader shifts in global supply chains.
Josh Allen, Chief Commercial Officer of ITS Logistics, said supply chain professionals are now actively redesigning shipping routes and sourcing strategies. When manufacturers relocate production to other countries, transit times increase, and destination ports may change. Despite record-breaking volumes, Allen believes the current depressed global demand is cushioning the logistics sector from complete overload.
Sourcing Strategies Shift Amid Ongoing Uncertainty
Retailers like Bogg, a fashion and accessories brand, are navigating difficult choices. Founder and CEO Kim Vaccarella began diversifying production into Vietnam to reduce tariff exposure, but much of her company’s raw materials and machinery still originate in China. Though production was initially halved, Bogg later reinstated some orders after temporarily raising product prices.
However, Trump’s preliminary trade deal with Vietnam adds further complications. The draft language includes a 40% tariff on transshipments—products that begin manufacturing in China but are completed in other countries—casting doubt on whether Vietnam can truly provide tariff relief.
“Everything is up in the air,” Vaccarella said. “We planned to decide on pricing in July, but without clarity, we’re still in limbo.”
Limited Shipping Time, High Stakes
Although a short extension on tariff deadlines gave importers a brief reprieve, ocean freight shipments often take 20–30 days, with East Coast routes taking even longer. For companies still needing goods urgently, more expensive air freight is the only option.
As trade deadlines, tariff hikes, and geopolitical deals continue to evolve, importers, port officials, and logistics providers are bracing for continued disruption. The record-setting June is a reflection not of long-term growth, but of urgency, uncertainty, and strategic maneuvering in an unpredictable trade environment.
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Source: CNBC
