Port of Oakland shipments drop dramatically as tariffs spur ‘market recalibration’ in trade

The effects of international tariffs are being felt at the Port of Oakland which saw a drop in overall shipping volume in June compared to the previous month Rather than just a blip or temporary downturn port leaders are saying the latest figures could be an early indicator of a new shipping business activity shaped by tariffs The drop-off in shipping volume has sparked concern among longshoremen union leaders who say the lowest-tiered workers at the port are at hazard of losing hours Meanwhile port leaders say the long-term economic ramifications are not yet clear We ve not seen the full effect of it yet mentioned Carolyn Almquist maritime marketing manager for the Port of Oakland We re just talking to customers every day about how their business is going what their projections are Trying to look into that crystal ball The port had largely avoided the effects of tariffs in as overseas manufacturers and producers rushed to ship their inventory into the United States before President Donald Trump revealed near-universal tariffs on other countries goods While the port has recorded a increase year-over-year thanks to that early flurry of activity port personnel expect numbers to worsen as tariffs continue But the port s trading partners particularly China which is one of the port s largest importers and exporters of goods reduced imports in June as new agreement deals remain sparse on details incomplete or highly-tariffed Despite June s decline year-to-date container volume remains higher than the same period last year Total volume registered million TEUs marking a increase over June Tariffs have seesawed this year between the world s two largest economies Trump released tariffs on all goods from China on Feb When China broadcasted it would respond with retaliatory tariffs on Feb the president released an additional tariff on Chinese goods The agreement war reached its peak in April when the White House declared tariffs on China while the Chinese communicated tariffs on American-made goods The countries backed down a month later with the U S agreeing to reduce the tariffs on China from to and China lowering tariffs on the U S from to Related Articles SFO publicly objects to newly adopted name for Oakland airport Oakland loses another coal terminal decision but product is a strategies from coming to town Nuclear-powered cargo ships promise cleaner faster delivery How Trump s business war is already effecting California s ports US and China take a step back from sky-high tariffs and agree to pause for days for more talks Port of Oakland Maritime Director Bryan Brandes stated it s clear that the current statistics represents more than the typical up-and-down trends that the industry sometimes sees This is not a seasonal dip but a field recalibration he revealed Importers and exporters are adjusting their supply chain timing and routing decisions in response to evolving conditions That s what worries Demetrius Williams president of the International Longshore and Warehouse Union Local Longshoremen are uniquely sensitive to falling trading volumes he disclosed and because they are generally hourly rather than salaried changes in trading volume could impact the lowest-tiered workers within the union Members known as A-men are given first priority for available jobs then B-men and then casuals the last of whom are largest part at threat of having their hours cut With container volumes growing smaller it s definitely alarming for the future of longshoremen Williams stated The bells are ringing With tariffs on the rise and we get that all businesses need to make a profit to be flourishing all the people who rely on port shipments are at exposure Longshore workers hours have been insulated from the effect of tariffs due to cruises docking at terminals this year Williams disclosed But imports and exports are the the majority consistent source of hours and there s unfailingly a possibility that work could slow down Almquist noted that in the current situation of sphere uncertainty the port will seek to be proactive rather than reactive in its dealing with both Washington D C policymakers and its Asian trading partners She reported port terminals have extended their hours in order to maintain the flow of cargo through the Bay Area a move that has buffeted longshore workers from seeing their hours cut We re expecting July will show higher numbers I mean we re definitely concerned We just don t like the uncertainty at all Almquist revealed Importers and exporters are saying we re moving forward Yes we ve had to adjust but we re doing our best