Crypto News: Supply Lines: Beating the tariffs

The ports of Los Angeles and Long Beach, which account for roughly a third of all US container imports, have seen a surge this summer just shy of an all-time high reached in May 2021.

Back then, a wave of inbound consumer goods caused supply bottlenecks on land and a queue of cargo ships waiting for a berth offshore was getting longer by the day.

This time around, cargo is moving more smoothly through the twin ports, as businesses bring goods in ahead of potential tariff increases and the threat of a dockworker strike hangs over alternate ports.

The Port of Los Angeles processed more than 960,000 20-foot container units in August, marking the trade gateway's busiest non-pandemic month ever.

"To give you some perspective on how busy we were in August, we had 97 container vessels called the port, the highest number in four years," Executive Director Gene Seroka told reporters on Wednesday.

Next door, Long Beach had its busiest month on record in August, which CEO Mario Cordero credited last week with cargo diversions from other coasts and concerns about upcoming tariffs.

Seroka spoke just as news broke of the Federal Reserve's half-point rate cut, which he said should juice the economy, increase consumer confidence and keep goods flowing. "It's a start, but very good news across the economic segments."

Meanwhile, tens of thousands of dockworkers are poised to walk out of East and Gulf coast ports when their contract expires on Sept. 30, global shipping capacity is stretched from ongoing attacks on vessels in the Red Sea, and the threat of escalating trade wars are all flashing warning signs to importers that could keep them sending more cargo through Southern California.

Seroka said the LA port is currently running at about 80% capacity and could handle more if necessary, though given strong economic data "all of our ports nationwide have to be running at top speed."

George Goldman, the North America president of CMA CGM, said the container carrier and other members of the US Maritime Alliance want to reach a deal with the International Longshoremen's Union to avoid disruptions at major ports from Houston to Boston.

"One day it's too long of a shutdown," Goldman said. "The reality is is that we're a fluid supply chain process. The moment you close the door, things begin to back up."

—Laura Curtis in Los Angeles

Click here for more of Bloomberg.com's most-read stories about trade, supply chains and shipping.

Russia's trade lifeline | A network stretching from Dubai to China is involved in a multi-billion dollar effort to ship gas from Russia's Arctic LNG facility.

China will remove its tariff exemptions on some agricultural products imported from Taiwan as Beijing continues to ramp up pressure amid growing tensions with the island.
CVC Capital Partners signaled it's willing to increase its €14 billion offer for Deutsche Bahn's DB Schenker logistics unit after losing the bidding to Danish company DSV.
The US sued the owner and the operator of a Singapore-flagged ship that destroyed a Baltimore bridge in March.
The UK government agreed to boost trade and investment with Thailand.
The German government is launching a €1 billion fund for investment in raw materials as it seeks to limit dependency on producers such as China for critical minerals.
The EU is considering working 0n a trade deal with the United Arab Emirates as the 27-member bloc seeks to cooperate more with the Gulf states on issues including energy and security.
The UK and EU are preparing to postpone Brexit rules on parcel deliveries from Great Britain to Northern Ireland.
Germany's electric-vehicle market plunged last month, leading a broader decline in Europe that's left carmakers calling on Brussels to reconsider key climate targets.
VW and its oldest Chinese partner plan to shutter one plant in China and possibly more in response to slower demand for combustion-engine cars.
Watch Harvard economists professor Jason Furman discuss potential threats to the American economy.
Join Bloomberg Intelligence and Benchmark, a leading lithium supply-chain consultant, as they take an in-depth look at the current state and outlook for lithium, battery technology and manufacturing, electric vehicles, energy storage and government policy.

Maersk says it sees the global shipping market industry in a "more balanced supply and demand environment" moving into 4Q, according to the company's Asia Pacific Market Update.
Ukraine exported over 70m tons of commodities by over 2,500 ships through its Black Sea export corridor, President Volodymyr Zelenskiy says in a statement on Telegram.
Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers.
Use the AHOY function to track global commodities trade flows.
See DSET CHOKE for a dataset to monitor shipping chokepoints.
For freight dashboards, see {BI RAIL}, {BI TRCK} and {BI SHIP} and {BI 3PLS}
Click HERE for automated stories about supply chains.
On the Bloomberg Terminal, type NH FWV for FreightWaves content.
See BNEF for BloombergNEF's analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

Don't keep it to yourself. Colleagues and friends can sign up here. We also publish Economics Daily, a briefing on the latest in global economics.

For even more: Follow @economics on Twitter and subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and gain expert analysis from exclusive subscriber-only newsletters.

How are we doing? We want to hear what you think about this newsletter. Let our trade tsar know.

Stay updated by saving our new email address

Our email address is changing, which means you'll be receiving this newsletter from noreply@news.bloomberg.com. Here's how to update your contacts to ensure you continue receiving it:

Gmail: Open an email from Bloomberg, click the three dots in the top right corner, select "Mark as important."
Outlook: Right-click on Bloomberg's email address and select "Add to Outlook Contacts."
Apple Mail: Open the email, click on Bloomberg's email address, and select "Add to Contacts" or "Add to VIPs."
Yahoo Mail: Open an email from Bloomberg, hover over the email address, click "Add to Contacts."

Like getting this newsletter? Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and subscriber-only insights.

Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more.

Want to sponsor this newsletter? Get in touch here.