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First Drop for Inbound Containers Forecast After Surge Ahead of Tariffs

  • Inbound container volumes at the twin hubs in Southern California experienced their first decrease in early May 2025 following a surge prompted by new U.S. Tariff announcements.
  • This drop followed companies frontloading cargo to avoid 145% tariffs on Chinese goods announced on April 9, with some conflicting views on timing and impact severity.
  • Ocean freight bookings from China fell by 60%, and port volumes dropped 30% to 40% on the West Coast, while businesses shifted production to lower-tariff countries and diversified sourcing.
  • "Businesses were caught by surprise" by the tariffs' scope, and industry leaders warned that the import drop may lead to product shortages and supply chain paralysis, as shipments arrive in May and June.
  • The decline suggests sustained supply chain disruption, with experts expecting slower freight demand, increasing warehousing needs, and potential easing if upcoming trade negotiations succeed.
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Chain Store Age broke the news in on Thursday, May 8, 2025.
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