SEATTLE — Trade data released this week indicates a significant decline in cargo shipments anticipated to arrive at West Coast ports, including Seattle and Tacoma, in May. Port officials expressed concerns during a virtual meeting regarding the implications of elevated unemployment and inflation, particularly stemming from a hefty 145% tariff on Chinese goods.
The impact of this tariff can be felt across the port operations, prompting longshore workers like Abin Nellams to voice their frustrations. Nellams, a crane operator at the Port of Seattle since 1996, described the situation as unprecedented chaos affecting the flow of goods into the region. “It’s striking how immediate the repercussions have been,” he said, noting the troubling trend of “blank sailings”—scheduled ships that fail to arrive.
Commissioner Ray Calkins of the Port of Seattle and Commissioner Dick Marzano of the Port of Tacoma acknowledged the alarming situation. Calkins confirmed a notable decrease in the number of containers on incoming vessels. While March recorded an 18.4% increase in vessel arrivals compared to the previous year, projections for May suggest a drop of more than 40% from typical figures for this time.
“In light of this new data, it’s evident we’re headed for a challenging summer,” Calkins said, underlining the potential effects on consumer goods and the economy. Although he reassured residents that grocery stores would not run dry, certain sectors like furniture, clothing, and electronics could experience shortages.
Marzano echoed these sentiments, highlighting a cautious outlook for the labor market. “As cargo decreases, it may lead to job cuts among longshore workers and truck drivers,” he warned, pointing to a looming rise in unemployment levels and further inflation.
The Longshore Workers Union has been approached for comment but has yet to respond. Despite the difficulties ahead, Marzano emphasized that port operations would continue. “We remain open for business, albeit under more strenuous conditions,” he noted.
In the last 30 days, the Northwest Seaport Alliance reported a 7.3% increase in cargo volumes in Seattle, partly due to shippers accelerating their orders in anticipation of tariffs. The number of vessel calls has also risen year-over-year, with more ships docking at both Seattle and Tacoma.
Efforts are underway to foster new global trade partnerships, with both commissioners praising the support from local and congressional leaders throughout the ongoing trade tensions. Calkins mentioned that port representatives are currently in South Korea, exploring opportunities for expanding trade channels.
Reflecting on the surge earlier this year, Calkins suggested that it may have been driven by businesses placing orders well in advance, motivated by tariff fears that have been brewing since the beginning of the trade war.