Key facts
- Imports at the Port of Los Angeles reached the second-highest level in history in May.
- Retailers accelerated imports to avoid rising fuel costs and potential scarcity due to Middle East shipping disruptions.
- Total U.S. container import volumes rose 11.5% in May year-over-year.
- Plastic goods imports, including school supplies and kitchenware, saw substantial increases.
- Vessel operators plan to implement higher fuel surcharges starting July 1.
Imports surged at the Port of Los Angeles in May, reaching the second-highest level in history, as retailers accelerated their stocking of goods. This rush was driven by concerns over rising fuel costs and potential supply chain disruptions stemming from the conflict in the Middle East, particularly impacting shipping through the Strait of Hormuz.
Retailers are attempting to bring in products like plastic school supplies and kitchenware before July 1, when vessel operators are scheduled to begin recouping increased fuel expenses. The conflict has led to higher marine fuel costs and worries about the scarcity and expense of raw materials and finished goods. Companies are now factoring in energy costs, tariffs, inventory needs, and geopolitical risks when making sourcing and shipping decisions.
The Port of Los Angeles processed 840,165 twenty-foot equivalent units (TEUs) in May, with imports alone increasing by 26% compared to the previous year. This surge contrasts with May of the prior year, when tariffs caused a slowdown in shipments. Port officials anticipate June and July volumes to be even stronger.
Data from Descartes Systems Group indicated that total U.S. container import volumes rose by 11.5% in May year-over-year. Imports of plastic goods, specifically, saw a 26% increase, with notable jumps in plastic office or school supplies (nearly 87%) and plastic tableware and kitchenware (57%).
Concerns about future costs are amplified by the planned July 1 implementation of higher fuel surcharges by vessel operators. Additionally, potential expirations of existing tariffs and proposed new tariffs by the Trump administration could further influence import strategies.