According to Shipping Industry Network, CNBC reports that across the United States, from California to the Mexican coast, trade volumes at secondary and smaller ports are declining as shippers readjust deliveries to meet the August tariff deadline.
Based on the latest container throughput data from ITS Logistics’ monthly U.S. Port/Rail Freight Index, despite a significant increase in cargo volume at the Port of Los Angeles, the busiest port in the U.S., this comes at the expense of trade activity at smaller ports, which have seen reduced import scheduling services.
Paul Brashier, Vice President of Global Supply Chain at ITS Logistics, stated: “Ports such as Oakland, Jacksonville, New Orleans, and Panama City in Florida are experiencing fewer vessel calls as more shippers opt to unload at larger ports to complete product shipments before tariffs take effect.”
The latest data shows that the Port of Oakland’s container throughput in June fell by 10.1% month-on-month and 13% year-on-year. As the largest refrigerated export gateway in the U.S., nearly all containerized cargo passing through Northern California transits this port. Additionally, the port maintains a balance between imports and exports and plays a vital role in U.S. agricultural trade. Bryan Brandes, Maritime Director of the Port of Oakland, noted that weak demand stems from ongoing tariff uncertainty: “This is not a seasonal downturn but a market realignment.” “Importers and exporters are adjusting their supply chain timing and routing based on shifting market conditions.”
Container throughput is a key driver of regional employment and economic stability for ports. In recent months, port officials have expressed concerns about trade war risks. Employment and trade have always been focal points for major ports. Gene Seroka, Executive Director of the Port of Los Angeles, previously stated that declining container throughput impacts employment.
Before the mid-August U.S.-China trade agreement deadline, Chinese goods will arrive in the U.S. before higher tariffs take effect. However, port officials emphasize that this will not lead to a “surge” in port throughput.
Smaller ports will continue to face economic challenges.
Gene Seroka told CNBC, “Schedule changes simply mean shifts in throughput and more uncertainty. Looking ahead to August, if current conditions persist, importers’ costs will rise due to new tariffs, and freight volumes are expected to decline. Smaller ports will continue to face economic hardships.”
“It’s easy to say the peak season arrived earlier than usual, but it’s unclear how long this will last.” “The recent trend of shipping lines concentrating on major ports like Los Angeles while bypassing secondary ports like Oakland should continue.”
Gene Seroka pointed out that the market is currently filled with uncertainty, and businesses are rearranging logistics to complete shipments as efficiently as possible—all tied to profitability. When negotiating with logistics providers, shippers may gain stronger bargaining power if more containers arrive at a single port rather than being dispersed across multiple ports.
According to trade tracking firm Vizion, container throughput at most U.S. secondary ports dropped significantly in July compared to June. The Port of Tacoma declined by 36.01%, Seattle by 35.75% month-on-month, New Orleans by 34.92%, Baltimore by 17.65%, Charleston by 13.37%, and Jacksonville by 12.90%. Meanwhile, Oakland and Mobile saw increases of 1.1% and 7.04% month-on-month, respectively.
North Carolina Governor Josh Stein revealed that the state’s largest port, Wilmington, has also experienced recent declines in throughput due to trade policies that “change almost daily.” He stated: “We need stability, businesses need stability, so they can determine how and where to invest.” According to Trade Partnership Worldwide, international trade accounted for over 20% of North Carolina’s GDP in 2024.
Additionally, SONAR’s latest ocean container booking data indicates that China’s export outlook to the U.S. suggests fewer orders heading to the U.S. in the coming weeks. Even as the stock market and economy show resilience amid tariff uncertainty, U.S. companies continue to scale back orders or phase out less popular products.
Paul Brashier noted, “Shipping lines are adjusting service schedules, leading to fewer sailings and fully loaded vessels, reflecting the broader hesitancy in global trade.”
He explained that maintaining a diverse port service network is primarily driven by economic considerations. Reducing port calls may lead to higher costs, especially when export containers are located in different areas, where trucking costs could be two to four times higher than usual. “Typically, a company’s distribution center is close to the port where its goods are imported. If their containers are unloaded at another port, what would have been a local pickup could turn into a 400- to 500-mile trucking job. The longer the trucking distance, the higher the freight costs.”
