Tariff rules may slash US port calls, crippling smaller port economies

Proposed US restrictions on Chinese-built ships may force container liners to limit port stops, funneling traffic to Los Angeles and Long Beach while bypassing smaller ports.

PHOTO: Shipping containers stacked at the Port of San Pedro in Los Angeles. Getty Images

"On the West Coast, LA and Long Beach - which handle 40% of US imports - could be the only ports ships call at," said Eugene Seroka, executive director of the Port of Los Angeles.

This would create bottlenecks in a major port like Los Angeles, while leaving smaller ports without key trade flows.

For instance, skipping ports like Oakland would cut off jobs in shipping, logistics and fuel supply. Many of these communities depend on steady container traffic, and fewer ship calls could cripple local businesses.

Bunker fuel demand would also shift to Los Angeles and Long Beach, further straining industries in bypassed ports.

"Losing these calls would be devastating for these communities, their workforces, and regional supply chains," Seroka said.

Seroka believes, however, that shipping rates may remain stable as carriers adjust.

He noted China’s share of Los Angeles's imports has already fallen from 57% to under 45% as trade has moved toward Southeast Asia over the past few years.

By Gautamee Hazarika

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