With the supply chain still wading through tariff uncertainties — and now a U.S.-launched war in Iran — questions of cargo flow and rising fuel prices took center stage at a virtual news conference held by Port of Los Angeles Executive Director Gene Seroka on Thursday, March 12.
The situation is being closely watched, Seroka said. But so far, he said, it is not causing problems at West Coast ports.
“We’re monitoring the situation closely,” he said, adding that so far, there have been no disruptions to U.S.-bound cargo because of the distance and lack of direct routes generally from that region.
Even so, the spikes in fuel costs — along with remaining uncertainty surrounding tariffs — are generating a focused concentration within the industry as a whole, Seroka said.
“With so many developments affecting supply chains — from the conflict unfolding in the Middle East to the Supreme Court tariff ruling and broader trade policy shifts — there’s real uncertainty across the industry right now,” Seroka said. “Even so, manufacturing flows serving the United States continue to move, and we’re not seeing disruption to U.S.-bound cargo today.”
Seroka’s guest, however — Ron Widdows, a former ocean carrier CEO who leads one of the nation’s leading chassis companies — said impacts on shipping are certainly being felt elsewhere.
“I’ve never seen an impact like this,” said Widdow, who has worked in the Middle East.
Even the Iran-Iraq “all-out” war in the 1980s, he said, “didn’t have the (supply chain) disruption we’re seeing (in that region) today.”
But impacts are regional, he said, and ships calling at the Port of L.A. are not directly affected.
“(The overall) impact on fuel is gargantuan,” Widdow added. “It certainly is affecting the region widely and not just in the Persian Gulf.”
Cargo in that region, Widdows said, is having to be moved to different ports. The longer the war goes on, he said, the more port connectivity and cargo could wind up being affected.
But “supply chains are remarkably fluid,” Widdows added, crediting changes made out of necessity during the COVID-19 pandemic.
Ports like Los Angeles and Long Beach now have programs that can track cargo and anticipate arrival times, and other data that helps them plan ahead and move cargo more efficiently.
“People have access to information they didn’t have before,” Seroka said, “and we can plan better.”
Seroka also said he does not anticipate “runaway inflation” and said “everybody is trying their level best, but we need some permanency” in trade policy.
And Seroka stressed that uncertainty remains — particularly with the ongoing conflict.
“No one has an answer on how long this war will continue,” he said.
Asked about reports of possible drone attacks on the U.S. West Coast, Seroka said ports are a “soft target” but that the threats do not appear credible “at this juncture.”
But, he added, “not an hour goes by when we take our eye off the ball.”
Seroka is among those included in security meetings now being held in L.A., with another one planned for Thursday afternoon, he said.
Possible threats and information, he said, are moving through numerous cybersecurity centers for assessment.
Port of Long Beach CEO Noel Hacegaba, for his part, also said ongoing monitoring is in place.
“As we continue to monitor all intelligence related to potential drone strikes on U.S. assets, there are no credible threats directed at the San Pedro Bay ports complex,” he said in a Wednesday, March 11, statement. “As part of the nation’s largest port complex, the Port of Long Beach maintains the highest standards of security to protect the flow of trade that supports millions of livelihoods across the U.S.”
The port, he said, is “employing the latest threat-detection technology and practices” and is also collaborating with marine terminal operators, law enforcement agencies at all levels and other stakeholders “to safeguard the port and keep the nation’s trade moving securely.”
During his briefing Thursday, Seroka also presented the latest cargo numbers for February. Port of Long Beach numbers have not yet been released.
The Port of Los Angeles processed 824,323 twenty-foot equivalent Units in February, he said, marking the second-busiest February in the port’s history — and an increase of 3% compared to last year.
“Retailers and manufacturers brought in cargo ahead of the Lunar New Year holiday, when many factories paused production in Asia,” Seroka said, adding that the port is prepared for the expected uptick in cargo flow as the traditionally busier seasons arrive. “As we head into our traditional slack season, it will be followed by some replenishment of inventories, particularly spring and summer fashion goods.”
Two months into the year, the Port of Los Angeles has handled 1,636,324 TEUs, 5% less than the first two months of last year. Last year’s cargo flow was impacted by suppliers rushing goods out early to beat potential tariffs, resulting in full warehouses by the end of 2025.
But while cargo volume remains steady, Seroka said, global developments overall are creating some uncertainty across the supply chains as 2026 gets underway. The future of tariffs remains a big unknown, he said. So far, a 10% tariff was imposed by the Trump administration but that is limited by law to a 150-day period following the Supreme Court ruling against the president’s broader tariffs..
That period expires on July 24, but the administration has said it is exploring ways to continue tariffs beyond that.
