Port Los Angeles throughput jumps 17% in May

The Port of Los Angeles processed 840,165 Twenty-Foot Equivalent Units (TEUs) in May, a 17% jump above last year as import volume increased amid continued uncertainty surrounding trade policy and global supply chains.

Through the first five months of 2026, the Port has handled 4,119,869 TEUs, 1.4% ahead of the pace set during the same period last year.

“Our strong May performance reflects the resilience of the American consumer and the ability of businesses to adapt in a continuously changing environment,” Port of Los Angeles Executive Director Gene Seroka told reporters at a media briefing. “We're seeing cargo move for a combination of reasons, including inventory replenishment, concerns about fuel costs, trade-policy uncertainty and preparation for upcoming retail seasons. Companies are operating with shorter planning horizons and taking advantage of opportunities when they emerge.”

Exports Down

While imports were up, Seroka reported that exports were down and that this reflects a loss for U.S. agricultural exporters and producers:

“We handled 450,000 loaded import containers, a 26% increase over a very weak 2025 period, but about 3% above our five-year average. That increase tells us companies continue to move product through the supply chain at a healthy pace. Consumers are spending, businesses are ordering goods, and manufacturers continue to bring in parts and components. All despite the uncertainty we're seeing across the global economy.”

The export picture was different: “Meanwhile, exports tell a different story. We handled 108,000 TEUs, down 10% from last year and 8% below our five-year average. We've now seen year over year declines in six of the last nine months. A clear sign of the difficult environment facing many US exporters recently.”

Seroka recalled his May visit to the Agriculture Transportation Coalition annual meeting where the downturn is being felt by exporters: “I was in Tacoma, Washington with (Executive Director) Peter Friedmann and his Agricultural Transportation Coalition members for their annual meeting and I heard those challenges firsthand. It really hit home. Behind every export number are real people, farmers, producers and businesses working hard to compete in a difficult global environment. This must be corrected.”

For example, he noted that: “As for soybeans, (U.S.) exports to China fell 90% last year. Brazil and Argentina … picked up much of that market share. Once overseas buyers establish new sourcing relationships, it can take a lot of time to win that business back.”

Cautious Response To US-Iran Peace Agreement

Seroka warned that the details of the U.S. – Iran peace agreement were still not known and hopes that fuel prices would soon go back to where they were before the war may be premature: "The Strait of Hormuz could open and, as has been widely discussed, 20% of the world's energy products flow through that Strait. We could see oil prices continue their decline and inflation possibly easing over the weeks and months ahead. Shipping confidence could begin to return. Remember that the Strait accommodated 100 to 110 vessel crossings every day. But we have to be cautious.”

The reason is that the US-Iran agreement “that's been reported widely in the media is a framework, not a final agreement … Shipping lines haven't indicated that they'll move quickly. Crew safety remains the priority for the 20,000 seafarers that remain on ships in the Arabian Gulf. This is a situation where you definitely don't want to be first in line. And even with a possible reopening, it will take months to normalize schedules, get (the) supply chain back to some semblance of normalcy and clear backlogs.”

The bottom line is: “We'll see a little bit of relief at the pump. But still, even as of this morning, oil on a barrel basis is a third higher than it was back on February 28 (i.e. before the war). And these prices are set worldwide, not … country specific.”

June Projections

Seroka said the Port’s volume projector, the Port Optimizer, is projecting a solid June: “The Port Optimizer signal, which tracks imports headed to LA, is projecting a strong June. We expect to surpass 900,000 container units for the month. What's interesting is that this strength has multiple drivers. Companies are weighing energy costs, tariffs, inventory needs and geopolitical risks as they make sourcing and shipping decisions. And when they find a window of stability, many are moving quickly to take advantage of speeding cargo through the supply chain while conditions allow.”

Early Peak Season?

Seroka noted that the Section 122 tariffs of the 1974 Trade Act, “are scheduled to expire on July 24 unless Congress extends them. The administration has signaled that it may move forward with additional measures under other authorities, including proposed Section 301 tariffs tied to forced labor concerns. Planning horizons have gotten a lot shorter. Companies are adjusting by replenishing inventories and locking in costs while they can. This is the new reality of doing business in today's trade environment.”

Seroka was asked whether current import orders may be aimed at bringing in product before a new set of tariffs are imposed so that a strong May and June might reflect cargo being pulled forward that normally would come in … the second half of the year.

He replied: “I guess only history will tell … but probably so. And as we highlighted earlier, the supply chain works best when there's an assemblance of certainty around it. And what people tell me on the import side of the ledger is: ‘I know what my landed cost is going to be at least until July 24th. I haven't really felt the total impact of higher energy prices relative to bunker fuel, diesel fuel on the land side, etc. And if I do know what they are, they're pretty solid for right now because they're not going to change daily. And I also see that the economy keeps moving along. So, I'm going to take advantage of this window. Just like I have in years past when policy was shifting back and forth. When I saw a window of opportunity, I was going to speed that cargo into market.’”

Growing Opposition to Zero Emissions

At the Posidonia 2026 maritime exposition that recently concluded in Athens, Greece, many shipowners, especially in oil and gas, expressed renewed opposition to the United Nations’s International Maritime Organization (IMO) proposals for a Net Zero Framework (NZF) on vessel emissions that is opposed by the Trump administration and Greece.

This is a proposed United Nations system to price maritime shipping emissions. It was set to apply from 2028 to shipping in IMO member countries, applying a carbon price of $100 USD per ton of CO2 equivalent. If implemented, it would have imposed a fee on vessels that pollute above a certain threshold, thus incentivizing the shipping industry to become less polluting. Last October, the NZF implementation was successfully opposed by the United States with the promise of reconsideration in October 2026.

Prior to the delay of the agreement, successfully sought by the Trump administration, the proposed agreement had been supported by the European Union, Japan, China, Britain and the United States.

At a Posidonia 2026 panel discussion, billionaire Greek shipowner George Procopiou criticized the IMO’s Net Zero Framework (NZF), and IMO Secretary General Arsenio Dominguez.

Procopiou, the founder of Dynacom Tankers, Sea Traders and Dynagas, said he could not understand the “obsession” with the NZF and why the IMO would want to target a 2% share of the world’s carbon footprint, given that shipping handles 90% of global trade while emitting only 2% of global carbon emissions.

Procopiou said the IMO’s intent to support the NZF would result in “this very adventurous new IMO Secretary General Arsenio Dominguez (who) wants to become the biggest banker in the world.”

Seroka was asked whether he thought Procopiou had made a valid criticism.

He responded as follows: “This has been a topic of conversation for some time here in Southern California (where) the twin ports of Long Beach and Los Angeles introduced the first ever policy measure: The Clean Air Action Plan (CAAP). We now have the lowest footprint of pollution per shipment since we began measuring two decades ago. So, there's a lot of focus on this and at the IMO level … a vote on the Net Zero Framework was postponed … into the future, and we're not quite there yet. Across the board, whether it be with renewable and synthetic fuels, the capability from the asset side on the ship, whether it be container, bulk, liquid bulk or others, there's a lot more work to do. The virtue of shipping and the touch points that it has are unquestioned. But everyone in our sector here, led by ports, land transportation service providers alike, are trying to do their best on the sustainability side and making sure that the neighborhoods and communities in which we work are treated very fairly and we are looked to as partners for that. So, there's much more to do here.”