April Port Activity Rises, But Tariff Questions Persist

• The Ports of Los Angeles and Long Beach reported an 8.9% month-over-month increase in loaded cargo volume in April, handling over 1.1 million TEU’s(Twenty-Foot Equivalent Units). Much of the uptick is attributed to occupiers front-loading shipments in anticipation of potential tariff increases.
• In April, the U.S. announced a 90-day suspension on most tariffs with China, which could help sustain elevated port activity in the near term. This temporary pause can provide occupiers an opportunity to restock inventories and potentially boost short-term demand for warehousing, particularly for any overflow and safety stock.
• For now, the increase in cargo volume may drive some short-term demand for industrial space in Southern California. But until there's more clarity on long-term trade policies, most occupiers are likely to remain cautious on any major expansion plans.

Los Angeles, Inland Empire
Erick Parulan