The Blubber

This week, the ports of Los Angeles and Long Beach—America’s busiest—are beginning to feel the weight of the Trump administration’s newly imposed tariffs on foreign goods. On Monday, the impact was clear: cargo traffic was visibly reduced.

Officials at both Southern California ports reported that activity is down by nearly half, signaling a sharp decline in shipments arriving from China and, with it, a likely reduction in jobs.

“We’re at an inflection point—it’s pretty dire,” said Mario Cordero, CEO of the Port of Long Beach, on Monday. “What we’re seeing now is a preview of what could happen throughout the broader supply chain. We have fewer vessel calls and less cargo.”

The Port of Long Beach has already seen a dramatic slowdown this week, with 34 scheduled sailings canceled. Nearby, the Port of Los Angeles has experienced 36 cancellations.

According to Cordero, port activity hasn’t dipped this low since the height of the COVID-19 pandemic.

“COVID showed us what it looks like when the cargo flow stops. We don’t want to go down that road again,” he said.

Together, the ports handled 20 million containers last year. But for the week of May 4, they’ve recorded a 44% drop in docked ships compared to the same time last year.

“Every four containers represent one job,” Gene Seroka, Executive Director of the Port of Los Angeles, told Bloomberg News on Sunday. “So when volume drops, that translates directly into fewer job opportunities.” Seroka warned that port workers could soon face reduced hours, with no overtime or double time, and possibly less than 40 hours a week.