Strong growth in throughput at two major U.S. West Coast ports in May underscores the resilience of import demand.

Introduction

The two major gateway ports on the U.S. West Coast—the Port of Los Angeles (POLA) and the Port of Long Beach (POLB)—recently released their May operating data, both recording strong year-on-year growth. Against the backdrop of persistent trade policy uncertainty and global supply chain volatility, this performance highlights the resilience of import demand, while also exposing continued weakness in the export sector.

Key Data

• Port of Los Angeles: Total throughput in May was 840,165 TEU, up 17% year-on-year. Of this, imports reached 449,370 TEU (+26%), exports 107,657 TEU (-10%), and empty containers 283,138 TEU (+18%). The cumulative total for the first five months stood at 4,119,869 TEU, a slight increase of 1.4% year-on-year.
• Port of Long Beach: Total throughput in May was 842,030 TEU, up 31.7% year-on-year, marking the third busiest May on record. Imports were 418,851 TEU (+40%), exports 109,168 TEU (-32.9%), and empty containers 314,012 TEU (+21.8%). The cumulative total for the first five months was 4,050,247 TEU, up 0.2% year-on-year.

Port Impact Analysis

The May performance of both ports significantly exceeded historical averages. Gene Seroka, Executive Director of the Port of Los Angeles, noted that vessel turnaround times at the port are under four days, truck turnaround times have improved, and containers are leaving the port quickly, indicating that port operational efficiency remains high. Noel Hacegaba, CEO of the Port of Long Beach, emphasized that despite trade and geopolitical uncertainties, May was a "solid month."

The import growth is mainly attributed to the low base in May 2024, when tariff policies led importers to sharply reduce orders. Current import volumes are approaching the peak levels seen during the pandemic, reflecting robust U.S. consumer spending and ongoing inventory restocking demand. However, exports continue to shrink: the Port of Los Angeles saw a 10% year-on-year decline in exports, with six out of the past nine months recording year-on-year decreases; the decline was even more pronounced at the Port of Long Beach, at 32.9%. The increase in empty containers further underscores the trade imbalance.

Supply Chain Impact

Strong imports mean that U.S. West Coast ports still face certain pressure from container handling, but thanks to operational improvements, no severe congestion has occurred. However, weak exports may increase the cost of repositioning empty containers and negatively affect export-oriented sectors such as U.S. agriculture and manufacturing. Transpacific shipping capacity allocation may continue to favor imports, leading to tight backhaul capacity.

Regional ImpactNorth America: The increase in throughput at West Coast ports helps solidify the position of Los Angeles/Long Beach as the largest container gateway in North America, but the diversion effect to East Coast and Gulf Coast ports continues. Asia: The volume of cargo from major export regions such as China and Southeast Asia to the US West Coast remains active, but trade frictions may prompt some shipments to shift to Southeast Asia or Mexico. Global: Data from the two ports indicate that global trade demand has not significantly contracted, but weak exports reflect the decline in US manufacturing competitiveness and the impact of trade barriers.

Industry Perspective

Freight forwarders and shipping companies need to pay attention to the downward pressure on freight rates caused by declining export space utilization. The resilience of import demand may keep transpacific spot freight rates high, but long-term contract negotiations will become more complex. In terms of warehousing and logistics, the surge in imports will test inland multimodal transport and warehouse capacity, especially at hub nodes such as the Los Angeles Basin and Chicago.

Future Outlook

The peak season of the second half of the year is approaching. If US tariff policies are further adjusted, it may trigger a new wave of rush shipping. At the same time, the Red Sea crisis and restrictions on the Panama Canal continue to bring uncertainty to global shipping. The two ports need to continue investing in infrastructure and digitalization to cope with throughput fluctuations. Without policy stimulus, the export side is expected to remain under pressure.

Conclusion

The May data from the Port of Los Angeles and Port of Long Beach confirm the resilience of US import demand, but also reveal the export dilemma. During the reshaping of the global trade pattern, port operational efficiency and supply chain flexibility will become key to competitiveness.