Tariffs Impact Port of Los Angeles Job Market
President Trump’s tariffs are impacting the Port of Los Angeles, leading to fewer job opportunities for longshoremen and affecting the broader logistics economy.
The Port of Los angeles is experiencing a decline in job opportunities as President Trump’s tariffs negatively impact global trade and the regional economy. The tariffs have reduced the flow of goods into the U.S., affecting activity at the ports of L.A. and Long Beach.
Executive director of the Port of los Angeles, Gene Seroka, stated that nearly half of the longshoremen who support operations at the port have been without work recently. The port processed 25% less cargo than forecast for May.
The neighboring ports of L.A. and Long Beach,which collectively processed over 20 million 20-foot-long cargo units last year,are feeling the strain. these ports are vital for thousands of dockworkers, heavy equipment operators, and truck drivers.
Available work has decreased in recent weeks.out of 1,575 longshoremen seeking work, only 733 jobs were available over the last 25 work shifts.
“They haven’t been laid off, but they’re not working nearly as much as they did previously,” seroka told The Times. “since the tariffs went into place,and in May specifically,we’ve really seen the work go off on the downside.”
Marine terminal operators post job orders on a digital board three times a day. Longshoremen bid on these jobs, but when there are more workers than jobs, some go without pay. The average of 733 job orders over the past 25 shifts is notably low.
Typically, between 1,700 and 2,000 job orders are posted during a day shift, and between 1,100 and 1,400 during a night shift.
Seroka attributed the decline in job opportunities to lower cargo volume moving through the port. In May, 17 cargo ships canceled their planned trips to Los Angeles due to uncertainty over duties imposed by the Trump management.
Port data indicates that May saw 18% less cargo processed than April,despite May usually being a busier month. This decline is occurring before the Christmas shopping season,when orders are typically placed before July 1.
“The June numbers that we’re projecting right now are nowhere near were they traditionally shoudl be,” Seroka said.
the port has seen an average of five ships entering each day over the last week, compared to the typical 10 to 12 ships for this time of year.
U.S. Sen. Alex Padilla of California stated in a recent news conference, “The drop in cargo volume caused by Trump’s tariffs will mean empty shelves when products don’t reach our stores, rising prices on everything from groceries to clothes to cars, and undoubtedly, more Americans out of work.”
The decline in shipping is impacting L.A.’s logistics economy.A 2023 report found that the ports of Los Angeles and Long Beach contributed $21.8 billion in direct revenue to local service providers, generating $2.7 billion in state and local taxes and creating 165,462 jobs, directly and indirectly.
The study also found that a 1% decline in cargo to the ports could eliminate 2,769 jobs and endanger up to 4,000 others.
Union officials had previously predicted job losses for their members. Gary Herrera, president of the longshoremen union ILWU Local 13, warned last month, “Some of the workforce will not be getting their full 40 hours a week based on the loss of cargo. That is going to have an effect on the work opportunities for not just us, but for truck drivers, warehouse workers and logistics teams.”
The slowdown in activity at the ports of L.A. and Long Beach is also affecting local businesses. Seroka noted, “We’re starting to hear from small businesses and restaurants in the harbor area that their customer patronage is trending downward.Outside of COVID, this is the biggest drop I’ve seen in my career.”
“Since the tariffs went into place, and in May specifically, we’ve really seen the work go off on the downside.”
Frequently Asked Questions
- What are tariffs and how do they impact trade?
- Tariffs are taxes imposed on imported goods, often used to protect domestic industries. However, they can also disrupt global trade and increase prices for consumers.
- How are the tariffs affecting the Port of Los Angeles?
- The tariffs are reducing the flow of goods into the U.S., leading to fewer job opportunities for longshoremen and impacting the broader logistics economy.
- what is the long-term impact of these trade disruptions?
- Continued trade disputes and tariffs can create uncertainty and slow down the growth of global trade, potentially harming businesses and consumers.
