Bloomberg Talks Port of Los Angeles Executive Director Gene Seroka Talks Imports
May 2, 2025
Gene Seroka, Executive Director of the Port of Los Angeles, shares insights on the challenges faced by the shipping industry amid economic uncertainties. He discusses the significant drop in cargo volume and its effects on longshoremen, emphasizing the need for proactive fiscal policies to navigate high tariffs. Seroka also highlights how tariffs impact local manufacturing and logistics, stressing the struggle of small importers. He addresses the ongoing supply chain crisis, worker morale, and the strategic preparations necessary for future cargo demand.
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Tariffs Impacting Cargo and Jobs
- Cargo volumes at the Port of Los Angeles are expected to drop by 35% compared to last year due to high tariffs and importers pausing shipments from China.
- Every four containers handled support one job at the port, underscoring the impact of trade slowdowns on employment.
How Tariffs Are Applied
- Tariffs are assessed by U.S. Customs when cargo is offloaded at the port, paid by the importer of record.
- Importers pass the tariff costs down the supply chain, ultimately affecting consumers.
COVID-19 and Retailer Responses
- In March 2020, cargo at the port was cut in half but rebounded quickly due to a surge in online and curbside shopping.
- Large retailers like Walmart paused hiring and capital spending, awaiting more clarity on trade policies.