Officials with the Port of Los Angeles Thursday said based on its monthly operations report, the tariffs imposed in the trade war between the United States and China have started to affect its cargo volumes.
The Port announced it moved 770,189 twenty-foot equivalent units in October, a 19.1% decrease compared to 2018’s record-breaking October. Total volumes this year are still 1.8% higher than last year, which was the Port’s busiest year ever.
“With 25% fewer ship calls, 12 consecutive months of declining exports and now decreasing imports, we’re beginning to feel the far-reaching effects of the U.S.-China trade war on American exporters and manufacturers,” Port of Los Angeles Executive Director Gene Seroka said. “We expect soft volumes in the months ahead and with the holiday season upon us, less cargo means fewer jobs for American workers. We need a negotiated settlement and the tariffs lifted.”
Jobs at the Port are based on work availability, and longshore workers are distributed daily work orders for what jobs are needed. Seroka provided reports to multiple Los Angeles government agencies in September warning of the incoming issues related to tariffs.
In October 2018, cargo owners imported cargo at a record pace to get ahead of expected tariffs, the Port report stated.
This October, imports decreased 19.1%, to 392,768, TEUs compared to the previous year. Exports declined 19.3% to 140,332 TEUs, the 12th consecutive monthly decline of exports. Empty containers also declined 19% to 237,088 TEUs.
CNBC reported Thursday that China’s Commerce Ministry said that Beijing has agreed with U.S. officials to lift existing trade tariffs between the two nations in phases.
Gao Feng, a spokesperson for China’s Commerce Ministry, said that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods, according to the country’s state broadcaster.
The ministry spokesperson said that both sides were closer to a so-called phase-one trade agreement after constructive negotiations over the past two weeks.
The news organization also reported a planned meeting between President Donald Trump and China President Xi Jinping could be postponed until December, which could delay a chance for an interim trade deal to be signed.
The Trump administration announced in September that additional tariffs could go into effect if China didn’t further negotiate with the U.S.