Port of LA navigating past first-quarter decline

Based on the first quarter of 2026, the Port of Los Angeles reported a 5% decline compared to the first quarter of 2025, according to Eugene Seroka, Executive Director, Port of Los Angeles.

Seroka spoke at the Port’s media briefing on April 12th, in which he said: “Closing out Q1 here in LA, the Port handled 2.4 million TEUs. That's 5% lower than last year, which again was boosted by that pre-tariff uptick. Overall, this puts us right in line with our five-year running average and shows steady, consistent movement at America's busiest port after a roller coaster 2025.”

Seroka noted that March 2026 volumes were also down compared to 2025: “In March, we handled 752,000 twenty-foot equivalent units. That is a strong result coming off the Lunar New Year in Asia, which led to 17 blank sailings. And even with that seasonal dip, we came in just 3% below last March, which was elevated as importers front-loaded cargo ahead of tariffs.”

Seroka provided the following breakdown:

• Imports: “On the import side, we handled just over 380,000 TEUs in March, just 1% less than the same month last year.”
• Exports: “Meanwhile, exports came in at 132,000 TEUs, 7% higher than last March. That is the highest output number for the export containers that we have seen in nearly two years. While encouraging, we have much more work to do to develop a consistent upward trend.”
• Empties: “Turning to empties, we handled 239,000 container units. That is down 11% last year. We will be watching this very closely because it is a little bit lower, as we expect to gear up for seasonal products coming our way. It is worth noting that numbers in the first three months of the year often fluctuate depending on where the Lunar New Year falls on the calendar. That is why the first quarter as a whole tells a complete story.”

Seroka said the Port is expecting an uptick in April: “As we look ahead to April, retailers are beginning to replenish seasonal goods, including Spring and Summer fashion. In fact, our Port Optimizer signal shows an uptick in business (in) April with landings increasing … Based on that Port Optimizer and other data, I am projecting April will land in the 800,000 TEU range. A solid start to the second quarter.”

Continuing Uncertainty


The Iran War is continuing with uncertainty: “However, with uncertainty in the Middle East and trade policy still unsettled, we're staying ahead of it, keeping up with events and ready to respond to whatever comes our way.”

One of the big unresolved questions for US importers is when and if the Trump administration will repay $170 billion in tariff refunds: “The Supreme Court's February ruling struck down the sweeping International Emergency Economic Powers Authority tariffs known as IEEPA, raising immediate and still unresolved questions about if, when, and how refunds may be processed. There's a whole group of companies lining up to recoup those funds, be it through litigation, legislation, or any other available channel. That is about $170 billion that many of us would like to see injected back into the US economy. It is also worth noting that while the IEEP tariffs were struck down, tariffs on steel, aluminum, and autos remain, so industries are still navigating real cost pressures.”

Seroka noted that new tariffs are temporarily in place: “The administration responded to that Supreme Court ruling with a temporary 10% import charge under Section 122 of the 1974 Trade Act. This has a 150-day limit. We are now on day 54, and so far, there's very little clarity on what happens when that clock runs out.”

Finally, he said retailers are wondering what comes next in terms of purchasing: “because at the heart of all of this is the American consumer. We saw inflation jump almost a full percentage point in March, and consumer sentiment is reported at a record low. So, now the question is, at what point do families start to reconsider how much they are willing to spend? All of this is a reminder that uncertainty continues across the global economy, which limits planning horizons to a bare minimum.”

In response to a question from the China Daily about whether the Port of Los Angeles could maintain its green shipping corridor relationship with partner ports, Seroka responded as follows: “At the Port of Los Angeles, we must invest through budget cycles, of which we will bring our next year's budget to our Harbor Commission tomorrow at US$3.5 billion. We have to invest through economic cycles, and now we certainly must invest through election cycles. Most of this work that we do here at the Port, these infrastructure projects, the transition to a zero-carbon shipping environment, and port location take years and, in some cases, decades.”

Seroka noted: “We're in our third decade now of the Clean Air Action Plan that was initiated by the Ports of Long Beach and Los Angeles back in 2006. And it is interesting because it is never a straight line. We came up with some ideas. Technology's got to catch up. When technology is in place, finance has to be ready. And then when we get all of those moving together, if we have trade policy that changes or we have geopolitical eruptions like we are witnessing right now, all of that gets thrown into the soup, and it makes it taste very different than it did before.”

Seroka insisted: “Our resolve has never been stronger, and we will continue to work towards getting these renewable and synthetic fuels available at competitive prices for our shipping customers. We will make sure that we continue our work with the Los Angeles Department of Water and Power to generate, transport, store, and off-take green electricity, working with the hydrogen producers, et cetera. But I do not think this one point in time is going to dissuade us from continuing down this path with our sustainability strategy. It just made it an awfully difficult proposition, even more so than probably before.”

Seroka was asked whether the conflict in the Middle East and the continued inaccessibility of the Suez Canal might drive shippers to transport more containers to the Port of Los Angeles and West Coast ports as opposed to U.S. Atlantic and Gulf Coast ports. Seroka responded as follows:

“While China's cargo has dropped by 20 percentage points, going from 60% of our business portfolio in 2018 to about 40% now, we have continued to grow. Not only have we chased every pound of freight, but we've also seen the alignment with our shipping partners to get nonstop services and out of Southeast Asian nations to make sure that transit time is still very competitive with what they had been accustomed to in North Asia and whether that's going to be finished products going to the retail or fulfillment centers or parts and components for American factories which have about an equal amount of container traffic as do those retail goods. So, all of that is important, and we have kept the number elevated because of those shifts in policy … The price of vessel fuel has doubled in the past six weeks. Slower steaming, less burn on fuel, and shorter distances all lead to probably more cargo coming our way.”