Decline in Cargo Traffic Impacts Dockworkers at Port of Los Angeles

Decline in Cargo Traffic at the Port of Los Angeles Affects Dockworkers The Port of Los Angeles is currently experiencing a significant dip in work available for dockworkers, attributed to a notable decrease in cargo arrivals as trade relations with China face headwinds. The challenges stem from ongoing tariffs and reduced export volumes, creating uncertainty for those reliant on port operations for employment. Gene Seroka, the executive director of the Port of Los Angeles, reported that nearly 50% of longshoremen have recently gone without work. In a span of approximately two weeks, only 733 jobs per day were available for the 1,575 dockworkers seeking shifts, highlighting the stark disparity in job opportunities. This downturn in available work has been linked directly to a reduction in cargo, which has seen alarming trends since the implementation of tariffs by the Trump administration, starting in April. The duties imposed, particularly on Chinese imports, have ranged as high as 145%. As a result, U.S. companies have begun to cancel orders, while ocean carriers have resorted to blanking sailings on trans-Pacific routes. In May, 17 cargo ships canceled their trips to Los Angeles due to the declining demand, and the impact is evident in the statistics. In that same month, Chinese exports to the U.S. saw their most significant drop in five years, valued at $28.8 billion, reflecting a 34.5% decline. This marked the second-largest reduction on record, only surpassed by the steep plunge seen during the early stages of the COVID-19 pandemic. Although official statistics for cargo processed at the Port of Los Angeles for May are still pending, initial assessments suggest that throughput was approximately 25% below expected levels. The available job orders for dockworkers have also fallen significantly from the typical 1,700 to 2,000 per day for day shifts, and 1,100 to 1,400 for night shifts. At the Port, terminal operators announce available positions on a digital board three times daily, allowing dockworkers to bid for the roles. However, with the current number of job orders so low, many longshoremen are left without hours. Seroka clarified this point, stating, “They haven’t been laid off, but they’re not working nearly as much as they did previously. Since the tariffs went into place, and in May specifically, we’ve really seen the work go off on the downside.” The repercussions of this decline extend beyond dockworkers to various sectors in the supply chain, including trucking and rail services, which are essential for moving goods from the port to warehouses. Retailers, particularly small and mid-sized businesses, are expressing concerns about supply disruptions as well. In a potential turnaround, the recent rollback of tariffs on China might encourage a surge in imports as businesses rush to replenish stocks ahead of upcoming negotiations scheduled for August 14. Recent reports from Hapag-Lloyd indicate that bookings from China have more than doubled since the implementation of the tariff truce. If this trend continues, the Port of Los Angeles could see a spike in demand for dockwork as container vessels begin to arrive with increased cargo volumes. However, Seroka remains cautious about the upcoming months, suggesting that the projected traffic numbers are still below traditional expectations, saying, “The June numbers that we’re projecting right now are nowhere near where they traditionally should be.”