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Tariff Confusion Drives Record Volumes at Los Angeles Port

(Bloomberg) -- The Port of Los Angeles said it handled the highest container volume in its 117-year history last month, as uncertainty over President Donald Trump’s tariffs drives shippers to front-load cargoes.

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Already the busiest port in the country, LA moved more than 1 million twenty-foot equivalent units (TEUs) in July, an 8.5% increase from a year ago, the operator said on Wednesday. That includes containers entering and exiting its terminals, with loaded imports rising by a similar percentage to nearly 544,000 TEUs. The total volume handled was 14.2% higher than in June.

The spike was due to traders rushing to front-load their cargo to be able to reach US stores before Trump’s import duties take effect, said the port’s Executive Director Gene Seroka. Shippers are likely to continue to try and take advantage of any time-lag as confusion over the president’s aggressive attempts to reorder global trade disrupts shipping patterns.

“It’s been a roller-coaster ride all year long, and the ride’s not over yet,” said Seroka in remarks released on Wednesday.

A shipment leaving China’s east coast typically takes three to four weeks to reach a port on America’s west coast. The number of dry-cargo ships making such journeys hit year-to-date highs of nearly 75 on a 15-day rolling average basis between late June and mid July, according to data compiled by Bloomberg. Trump has extended a trade truce with China by 90 days till early November.