Seroka: Shipping Firms in "Wait and See" Mode

Summary

Port of Los Angeles Executive Director Gene Seroka discusses shipping firms' cautious approach to the Strait of Hormuz reopening, rising fuel and insurance costs, and tariff uncertainties. He notes that cargo volumes remain strong but warns that higher diesel prices are pressuring small truckers and that inflationary pressures from tariffs and energy costs persist.

• Shipping firms adopt 'wait and see' on Strait of Hormuz due to insurance and safety risks.
• Cargo flow between Asia and the US remains unimpeded with no significant backup of Middle East cargo.
• Vessel fuel prices have doubled, and these costs are passed through the supply chain.
• Diesel prices in Southern California are up 50% year-over-year, pressuring small trucking operators.
• Tariffs under Section 122 and 301 investigations create uncertainty for importers ahead of peak season.
• Inflation remains elevated due to tariffs and supply chain inefficiencies.
• Agricultural exports, especially soybeans, are significantly down due to trade shifts.
• Port of LA’s April cargo volumes are expected to be elevated versus the five-year average.