Port of LA sees 5.5% jump, but U.S. farm woes continue

The Port of Los Angeles reported a 5.5 percent increase in year-over-year volumes for April 2026, but U.S. farm woes continue, according to Eugene Seroka, Executive Director, Port of Los Angeles.

In his media briefing on May 11^th, 2026, Seroka reported: “April came in strong, our best month of 2026 and the highest since last August. We handled 891,000 container units. That is up more than five and a half percent from a year ago and 18% over the previous month.”

April Results

Seroka broke down the Port’s April results as follows:

Imports: “Starting with imports, we processed a robust 460,000 twenty-foot equivalent units in April. That is up 1.5% from last year and 21% over March. That is significant because last year's numbers were already elevated as importers front-loaded cargo ahead of tariff changes. When I was in Asia a few weeks ago, factories were operating at full capacity, moving spring and summer merchandise into the pipeline. That cargo is arriving now here in Los Angeles. The next import wave will be back-to-school products, followed by an early holiday inventory. And with U.S. manufacturing holding steady, we are also seeing a consistent flow of parts and components supporting American industry.”

Exports: Seroka reported on exports that included farm exports: “Turning to exports, Los Angeles moved out 128,000 container units on par with last year, but 13% higher than our April five-year average. Exports have been challenged for some time. Although we are beginning to see some recent improvement, there is still plenty of room to grow.”

Empty Containers: “Over on the empty side of our business. Just over 300,000 units moved out in April, up 10% from last year. That equipment is being cycled back to Asia factories for export hubs for moving the next rotation … to the United States.”

Seroka said that for the first four months of 2026, “Los Angeles dock workers have moved 3.3 million twenty-foot equivalent units. That is 2% above our five-year average.”

Iran war impact

Seroka also addressed the impact of the Iran War on trade: “The conflict in the Middle East continues to cast a long shadow on global trade. Yet here at home, the U.S. economy continues to move forward. Reported was 2% GDP growth in Q1. Inflation, although it's higher than many of us would like, is still not runaway. And although jobs have been soft over the past 15 months, last month was just a little bit better, and we have not seen a cratering overall.”

Strait of Hormuz

Seroka said the resumption of normal shipping operations through the Strait of Hormuz is not in sight: “Simply put, it's going to take confidence. We are just not there yet. Right now, we are seeing in the Strait of Hormuz just a trickle of normal activity. In a corridor that normally handles more than 100 ships a day. We are talking about less than a handful moving through right now. Shipping lines are watching every movement very closely, but I haven't spoken to a single executive who wants to make the first move. In this setting, the safety and security of ship crews is still the top priority.”

Seroka explained that a ceasefire announcement or a few vessels moving under military escort is not enough to restore that confidence: “What industry needs is a sustained, proven peace agreement, something that holds over time. Even then, reopening the Strait is just the start or the first step …It will take months to unwind the backlog and get vessels, cargo, and schedules back into a more normal rotation. This is a critical global trade artery. About 20% of the world's energy flows through that Strait. But also, as we've heard, fertilizers, aluminum, plastic, and resin inputs for everyday goods use the Strait. So, the ripple effect is being felt not only in fuel markets but also in manufacturing inputs and airline operations. Just last week alone, in Asia, some 2,600 flights were either canceled or delayed because of rising fuel costs and tepid supply.”

Tarriffs

Former U.S. Trade Representative Katherine Tai was Seroka’s guest and provided a tutorial on U.S. trade policies:

Tai explained how free trade policies had displaced American jobs, causing deep-seated resentments that President Trump’s trade policies appealed to: “Workers, especially blue-collar workers … fared the least well in the trade policies of the last 45 years. And as you see, President Trump go out with this very pugnacious and disruptive approach to trade and his really strong reliance on tariffs … we all should understand (appeals) to … members of our economy who have felt really aggrieved by the era of free trade are … attracted to this message of power and even vengeance when it comes to reordering trade policy.”

Tai noted that all U.S. tariffs imposed by the Trump Administration under the International Emergency Economic Powers Act (“IEEPA”) were terminated after the Supreme Court’s decision finding IEEPA does not grant the president authority to impose tariffs.

Tai warned that, despite the Supreme Court’s action, higher tariffs will remain in effect for the foreseeable future: “So the moment the IEEPA tariffs, … laid down in early 2025, were declared illegal by the Supreme Court … the administration moved out very quickly … They rolled out these tariffs under a different statutory authority, Section 122. These tariffs … can last … for 150 days, until the end of July, unless reauthorized by Congress, which with this Congress probably (is) unlikely. Those have been declared illegal by a lower court just recently … We expect those court proceedings to continue. The administration has already appealed that court decision, and it will take some time to get through.”

As a back-up, Tai said the U.S. Trade Representative (USTR) has initiated 76 new investigations directed against 60 trading partners: “USTR, in the middle of March, so less than two weeks after the Supreme Court decision on IEEPA, rolled out 76 new investigations under Section 301 of the Trade Act of 1974. Those 76 investigations are focused on 60 different trading partners of the United States. And I would say they are the 60 largest trading partners of the U.S. Those investigations have six months to run, but they don't need to run for the full six months. I would expect outcomes of those investigations to be announced in time for new potential tariff actions to be deployed as the 122 tariffs run their course.”

What this means for importers and exporters is: “is that there will be tariffs for the foreseeable future, but it's not entirely clear which tariffs directed at which countries at which rates. And so that is to say … the uncertainty around how those tariffs … will also continue.”

Refunds

There have been considerable challenges for those seeking refunds after the IEEPA tariffs were found to be illegal: “And the uncertainty … will also continue with the refunds that are now being rolled out under IEEPA. What occurs to me is the incredible amount of administrative and bureaucratic headaches, and the heyday for lawyers and consultants in the middle of all of this. It is a deeply disruptive time, but I think it's also a good opportunity, even if it is uncomfortable and hard for everyone, … to develop their agility and their resilience.”

Impact on farmers

Seroka had observed: “The American farmer has been really put into a spotlight they may not have asked for. We only consume about a third of all the crops that we harvest. The remaining two-thirds go to renewable energy and to emerging markets. That is not happening. Soybean trade to China was down 90% last year and down 80% through this Port.”

Tai agreed: “I would say that the farmers really end up getting the short end of the stick during Trump times. Although President Trump has a tremendous amount of support from rural America, from farming America, I think that President Trump … feels like he has a lot of political capital that he can spend from that kind of support. The number of dollars that go out during Trump times, that's in the first Trump administration and then now in the first half of this Trump administration …to bail out farmers who are impacted by the Trump trade policies is really mind-boggling.”

In her discussions with farmers, she noted: “When you can talk to … farmers, what you discover is that first, they are extremely savvy business people, and second of all, that they are extremely proud. They do not like taking handouts to get them through periods of time. What matters to them is their market opportunity, their relationship with their customers, and their ability to produce high-quality products. And so, as the farm bill is moving its way through Congress, it's never easy. I think in particular this year, as we're looking at that legislation move along (and) we are starting to realize how all aspects of our economy, including the farm economy, including farm trade, require new thinking and a renewed approach.”