U.S. Government Shutdown Complicates Import Decisions: Los Angeles Port Warns
U.S. Government Shutdown Complicates Import Decisions: Los Angeles Port Warns
The prolonged government shutdown in the United States is adversely affecting critical planning processes for importers. The inability of federal agencies to publish data is creating substantial uncertainty, particularly regarding purchasing and investment decisions. Port of Los Angeles Executive Director Gene Seroka, speaking at a media briefing on November 18, emphasized that the lack of data has constrained importers' strategic foresight capabilities.
According to Seroka, the vast majority of U.S. importers place orders with manufacturers in Asia during the November-December period ahead of the Lunar New Year (February 17). These orders directly determine the container volumes that constitute much of the flow through the Port of Los Angeles. Retailers typically have an approximate three-month ordering window, while manufacturers operate on shorter timeframes. The absence of federal data is complicating demand projections and inventory management decisions.
As Lunar New Year approaches, U.S. ports, particularly Los Angeles and Long Beach, traditionally prepare for a cargo ramp-up period. Seroka noted that there is only a six-week narrow window between year-end holidays and Lunar New Year, which is why the port expects a sharp surge in outbound volumes from mid-January onward. During one week when manufacturers will be closed, supply chain operations on the Asia-U.S. route largely come to a standstill. As a result, companies must operate at maximum efficiency in the period before the shutdown.
Seroka described the current outlook as having a "pretty normal look," meaning no panic or unusual congestion has emerged yet. However, importers are struggling to optimize cost projections and inventory levels due to the lack of federal data. In particular, the absence of federal statistics used for freight rate, capacity, and demand forecasts is slowing decision-making processes on both the retail and manufacturing sides.
Seroka expects cargo volumes in November and December to be softer compared with the same period last year. He attributed this to the frontloading behavior that occurred in the prior year, when companies filled inventories early in anticipation of potential tariffs. With no similar risk in the fourth quarter of 2025, loadings appear more balanced.
Nevertheless, the Port of Los Angeles is approaching the 10 million TEU threshold in 2025. In October, the port handled 848,431 TEU; this figure represents a 6% decline on a year-over-year basis, yet 1% above the port's five-year average. Import volume of 429,283 TEU tracked parallel to the five-year trend. This picture shows that companies cautiously scaled back orders as the year-end approached, though overall operational volumes remain healthy.
On the export side, the port handled 123,768 TEU, achieving performance 7% above the five-year average. October's empties volume was recorded at 295,380 TEU. This indicates that the U.S. trend of sending high volumes of empty containers to Asia continues.
Seroka's message is clear: the absence of federal statistics is complicating decision-making processes in import supply chains and creating uncertainty ahead of the Lunar New Year period. However, the Port of Los Angeles maintains strong operational performance and approaches the 2025 close with solid momentum.
Key Takeaways:
The U.S. government shutdown has prevented federal data publication; importers struggle with planning.
The critical pre-Lunar New Year ordering period proceeds amid uncertainty.
The Port of Los Angeles expects rapid cargo growth in January-February.
November-December volumes may trend softer compared with the prior year.
The port handled 848,431 TEU in October; approaching 10 million TEU for 2025.
Export volumes run 7% above the five-year average.
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Author: SedatOnat.com
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