ports

LA Port Braces for 7% Volume Drop Amid Trade Policy Shifts

The Port of Los Angeles will operate under a $3.4 billion budget for fiscal 2026-2027, a $665 million increase from the prior year. Officials forecast container volumes will decline 7% to 9.3 million TEUs, reflecting ongoing trade tensions and shifting import patterns. Shippers are increasingly routing cargo through Mexican and Canadian gateways. China's share of containerized imports through Los Angeles has fallen to 40% from 53%, as Beijing pursues alternative trade partnerships in Africa and Europe. Port leadership cited continued global trade volatility and policy uncertainty as headwinds to cargo growth. The budget allocates substantial funding toward capital improvements and sustainability programs. Operating revenues are projected to rise 26% year-over-year to $826 million, driven primarily by shipping services. Operating expenses are expected to climb 6% to $452 million.