Freight News, Logistics, Sea

Tariffs Topple LA Port Volume, FY 2025-26 Budget

[ June 20, 2025   //   Gary Burrows ]

The Port of Los Angeles blamed the impacts of tariffs on imports and exports, as its May volume fell 5 percent to 716,619 twenty-foot equivalent units, or TEUs, and ending 10 straight months of year-over-year growth in overall cargo volume.

“May marked our lowest monthly cargo output in over two years,” said Gene Seroka, executive director of the Port of Los Angeles. “While May volume is typically stronger than April as we approach our traditional peak season, our imports dropped 19 percent compared to last month.

“Unless long-term, comprehensive trade agreements are reached soon, we’ll likely see higher prices and less selection during the year-end holiday season,” Seroka added. “The uncertainty created by fast-changing tariff policies has caused hardships for consumers, businesses and labor.”

Ernie Tedeschi, director of economics at The Budget Lab at Yale, joined Seroka for the briefing, discussing the impacts tariffs have had on U.S. consumers. 

“The Budget Lab has been modeling the impact of tariffs on American households since the first announcements earlier this year. Tariffs would raise average prices by 1.5 percent, a loss in purchasing power of nearly US2,500 per household per year,” Tedeschi said. “But that impact isn’t the same across all families or products: lower-income and working-class families see a bigger hit than higher-income families, and products more likely to be imported like shoes, apparel, and consumer electronics will see double-digit percent price increases.”

May 2025 loaded imports came in at 355,950 TEUs, 9 percent less than the previous year. Loaded exports landed at 120,196 TEUs, a 5 percent drop from 2024. The Port processed 240,472 empty container units, 2 percent more than last year.

After five months in 2025, the Port of Los Angeles has handled 4.06 million, 4 percent more than the same period in 2024.

Fiscal Year 2025-26 Budget

Los Angeles’ Harbor Commission approved its US$2.7 billion fiscal year 2025-26 budget on June 12, which reflects a 3 percent increase over the previous fiscal year.

Port investments in the coming fiscal year will continue to focus on strategic priorities of business, community, sustainability and workforce development, the commission said.

“We come into this budget in a strong position, with nine consecutive years of positive cash flow,” Seroka said. “Yet in the face of global trade and economic uncertainties, it’s more important than ever to navigate with a steady hand, remaining focused on our planning and priorities.”

The proposed FY2025/26 budget anticipates cargo volumes of 8.2 million TEUs, a 9.9 percent drop from the previous fiscal year.

Operating revenues are forecast at US$657.6 million, with about US$470.3 million of those revenues to be generated by the port’s shipping services. Operating expenses are estimated at US$427.1 million.

The port’s will continue its capital improvement program, which is focused on strengthening the port’s operational capabilities and financial stability. The anticipated investment of US$231.3 million is down 7.2 percent from the FY2024/25 adopted budget.

Terminal and transportation construction projects in the coming year include:

• State Route 47/Vincent Thomas Bridge & Front St./Harbor Blvd. Interchange Reconfiguration, US$47.6 million toward the US$130 million project.

• On-dock rail expansion, Berths 302-305, US$26.3 million to support the US$73.8 million project.

•Two marine oil terminal engineering and maintenance standards, or MOTEMs), projects at Berths 238-239 and 167-169, US$24.4 million.

In 2024, the port again ranked as the top container port by volume in the U.S. and Western Hemisphere for the 25th consecutive year. The Port also continues to maintain its AA+ Bond rating – the highest of any U.S. port without taxing authority.

Tags: Port of Los Angeles, The Budget Lab