The ongoing trade war between China and the US is causing severe disruption and “logistical havoc” for trans-Pacific ports in Los Angeles and Long Beach, according to The Washington Times.
PTI recently reported on how major growth at China’s busiest ports could be negatively affected by the persistence of a conflict, but these tensions are also impacting ports in the US.
With higher tariffs of up to 25% set to be placed Chinese goods, retailers have been front-loading cargo before the new duties are enacted.
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This has caused the “record-setting surge of imports” witnessed across a number of US ports during 2018, a trend that has continued with the Port of Los Angeles recently enjoying the busiest May in their history.
As a result of cargo volumes rising so quickly, the Californian supply chain around Los Angeles and Long Beach has become incredibly congested, with truck lines growing and “warehouses bursting at the seams” according to Port of LA Executive Director Gene Seroka.
This comes despite the Los Angeles area having the most warehouse space in the US, only 1% of which was left vacant at the end of May according to the Washington Times’ report.
The most recent hike was originally due to come into force in March 2018, but this was pushed back following what Trump described as “productive” trade talks #PTIDaily #US #China #TradeWarhttps://t.co/cHld7cud1k
— Port Technology (PTI) (@PortTechnology) May 7, 2019
Despite the surge in imports witnessed recently, exports were down across both Los Angeles and Long Beach for the seventh straight month in May, creating concerns for those transporting their goods from the two ports.
Major retailers such as Walmart have also appealed to President Trump, emphasizing their concerns about how the trade conflict with China could potentially affect jobs and US consumers.
Trump will meet with Chinese leader Xi Jinping to discuss tariffs at the G20 summit in Osaka, Japan, which will take place later in June.