No vessels from China are en route to California's major port facilities. This situation hasn't been observed since the onset of the pandemic.
On a chilly Friday morning, West Coast port officials shared a surprising revelation with CNN: Not a single cargo vessel had departed China with goods destined for the two primary West Coast ports in over 12 hours. This hasn't happened since the onset of the pandemic.
Six days ago, 41 vessels were slated to leave China for the San Pedro Bay Complex, comprising the Port of Los Angeles and Port of Long Beach in California. However, by Friday, there were none.
The trade war instigated by President Donald Trump, which imposed steep tariffs on most Chinese imports last month, has resulted in a reduced fleet at sea transporting goods to the United States' ports. Many businesses, dealing with one of America's most vital trading partners, now find it financially unviable to continue operations with China.
Officials are worried not only about the lack of outgoing vessels from China, but the pace at which that number plummeted.
"That's cause for concern," said Mario Cordero, CEO of the Port of Long Beach. "Currently, we're observing numbers well above what we witnessed during the pandemic for cancellations and fewer vessel arrivals."
The country's busiest ports are grappling with significant declines in cargo. The Port of Long Beach, for instance, is experiencing a 35-40% drop compared to usual cargo volume. The Port of Los Angeles suffered a 31% drop in volume this week, while the Port of New York and Jersey is readying for a potential slowdown. On Wednesday, the Port of Seattle reported zero container ships within the port—an occurrence unseen since the pandemic.
"It's all because nothing is being shipped over," port commissioner Ryan Calkins informed CNN's Kaitlan Collins.
U.S. and Chinese trade representatives will convene in Geneva this weekend for their first face-to-face meeting aiming to ease the trade war. Most goods shipping from China to the United States incur a 145% tariff, while most U.S. exports to China face a 125% tariff. On Friday, President Donald Trump suggested reducing the tariff rate with China to 80%, but stressed that the final terms would be up to Treasury Secretary Steve Mnuchin.
For consumers, who are already contending with higher prices or shortages of certain items, Cordero remarks that a resolution can't come soon enough.
"If things don't change promptly, I'm talking about the uncertainty that we're seeing, then we may be looking at empty shelves for consumers within the next 30 days," said Cordero.
Over 63% of the cargo that enters the Port of Long Beach originates from China—the largest share among any U.S. port. However, that figure has dipped from 72% in 2016, as retailers shift away from China amid escalating trade tensions.
Despite this shift, China remains a significant supplier of imports to the United States. Maersk, the second-largest shipping line in the world, informed CNN that the cargo volume between the United States and China has plummeted by 30-40% compared to usual levels.
Vincent Clerc, CEO of Maersk, warned, "If we don't begin to see a de-escalation of the situation with China, if we don't start to see more of those trade deals, then we could find ourselves in a situation where some of these impacts become more entrenched and increasingly detrimental."
-Contributions by CNN's Maisie Linford
- The trade war policy-and-legislation initiated by President Donald Trump, which includes steep tariffs on most Chinese imports, has resulted in uncertainty in the ports industry, as many vessels have stopped departing from China to the United States, causing a significant drop in cargo volume at the country's busiest ports.
- With the lack of outgoing vessels from China to the ports of San Pedro Bay Complex (comprising the Port of Los Angeles and Port of Long Beach in California), ports officials are expressing concern about the general-news implications, particularly as the number of vessel cancellations and fewer arrivals continues to exceed what was witnessed during the pandemic.
- The ongoing politics surrounding tariffs and trade between the United States and China is not only affecting the ports, but also businesses dealing with China, as many find it financially unviable to continue operations with the significant cost increases due to tariffs.
- As trade representatives from the U.S. and China are set to meet in Geneva to discuss easing the trade war, officials at the ports are hopeful for a solution, as consumers are already struggling with higher prices or shortages of certain items, and further delays could lead to empty shelves within the next 30 days.
