Concerns Rise Over Plummeting Cargo Volumes at U.S. Ports

Logistics specialists are alerting that cargo volumes at U.S. ports are experiencing a significant decline. This trend is particularly noticeable in Los Angeles, which hosts the country’s busiest port and is the first to reflect any decrease in shipments from Asia. The reduction in container shipping serves as a stark indication of the real impacts the trade war initiated by the White House is having on the U.S. economy, with long-haul truckers being among the first to feel the repercussions.

Shipping Trends Reported

On Thursday, Craig Fuller, founder of a media firm that tracks shipping movements, stated that daily volumes this week resemble those seen on Thanksgiving and Christmas Day—historically the slowest shipping days. He also cautioned truckers against transporting shipments to Los Angeles due to the likelihood of returning home with empty loads, known in the industry as “deadheading.”

Impact of Trade War

This decline aligns with the ongoing consequences of the global trade conflict initiated by President Donald Trump, which imposed tariffs on numerous countries, particularly targeting China with an imposing 145% levy. Consequently, orders for Chinese products have dwindled, and the repercussions on shipping traffic are now being felt in the U.S.

Forecast of Import Volumes

Currently, the West Coast ports are beginning to sense the effects, with a significant impact expected shortly. A chart from Port Optimizer, hosted by the Port of Los Angeles, illustrates the anticipated decline in import volumes.

Wider Effects on Trucking

The decreasing volumes will directly result in fewer loads for truckers at the Port of Los Angeles, signaling only the start of broader implications. Alongside the drop at other West Coast ports such as Long Beach and Seattle, truck drivers in cities further from Asia will also experience a downturn in deliveries.

Future Shipping Outlook

Entrepreneur Molson Hart recently shared shipping route information indicating that within the next two weeks, container arrivals in Houston and Chicago will cease, with New York following suit a week later.

Implications and Uncertain Policies

Earlier in the week, President Trump suggested a willingness to reduce some of his tariffs. However, this may not sufficiently calm trading partners who remain apprehensive about the volatility of the tariff policy. Given the projected drop in container traffic, U.S. truckers may need to adjust to a reality of driving reduced distances in the coming future.

This story was originally featured on Fortune.com.