Port of Oakland: Tariffs could stymie volumes

The port’s 2019 volumes are up, but China accounts for 38% of its trade.

Port of Oakland: Tariffs could stymie volumes

The port’s 2019 volumes are up, but China accounts for 38% of its trade.

Port of Oakland: Tariffs could stymie volumes

The port’s 2019 volumes are up, but China accounts for 38% of its trade.

 

   It hasn’t happened yet, but the Port of Oakland is concerned that tariffs could drag down cargo volumes.
    However, Maritime Director John Driscoll said Oakland cargo volume is running 4.6% ahead of the port’s record volume in 2018.
    But in remarks to 50 trade executives who are members of the port’s Efficiency Task Force, he said tariffs are squeezing customers who ship through his port and the ongoing U.S.-China trade war could reduce containerized cargo volume. China accounts for roughly 38% of Oakland’s business.
    “Our customers are impacted by tariffs,” Driscoll told leaders from shipping, trucking, retailing and labor who convene quarterly to advise the port on operational policy. “We’re hoping we can get through this period because we believe the future can be bright.”

   Driscoll said the increase in volume this year is a pleasant surprise.
    “We thought our numbers would go down because of the trade war,” Driscoll explained. “It could still happen, but it hasn’t so far.”
    He added threatened Trump administration tariffs against Mexico would have negligible impact in Oakland as the port does little business there.
    T
he Port of Oakland is expected to release its cargo volume statistics next week for the month of May.

However, if shipping alliances are outlawed altogether, then freight rates will skyrocket because alliances are the only way that carriers can operate ultra-large container ships (ULCVs) effectively.

U.S.-flag Great Lakes freighters moved 10.6 million tons of cargo in May, an 11.9% year-on-year increase and 8.4% above the month's five-year average.

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Port of Oakland: Tariffs could stymie volumes

The port’s 2019 volumes are up, but China accounts for 38% of its trade.

Jun 07, 2019 on Dec 27, 2018AmericanShipper.com

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Port of Oakland: Tariffs could stymie volumes

The port’s 2019 volumes are up, but China accounts for 38% of its trade.

Jun 07, 2019 on Dec 27, 2018AmericanShipper.com