Slowdown expected at Port of Oakland this month as US tariffs impact flow of global trade

OAKLAND, Calif. (KGO) -- The Port of Oakland is the 10th largest container port in North America. Over the coming weeks, traffic into the port is expected to slow down because of impact of the new U.S. tariffs.

"Starting this month, in May, we are already planning on seeing a dozen fewer ships coming in. And, the ships that are coming in, they are going to be smaller, because we just have less demand," said Mike Jacob, who is president of the Pacific Merchant Shipping Association, which represents various maritime industries on the west coast.

Jacob said the tariffs and retaliatory tariffs have been much higher than many anticipated. And it's starting to impact Oakland

"When you are in that level of uncertainty, what happens is the people who are making the investments, who are making decisions about bookings, where cargo is going to flow, we stop," Jacob said.

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Officials at the Port of Oakland were not available for interview. But in a statement to ABC7 News, it says there has not been a "significant slowdown in cargo volumes directly tied to the tariffs," as of yet.

But there has been an increase in what's known as "blank sailings," which is when shipping companies cancel scheduled voyages. The statement says, "Between April and June, 39 blank sailings have been announced across multiple shipping alliances calling Oakland."

"When you lose ships, you lose access to world markets," Jacob said.

Jacob says Oakland is the number one gateway for exporting California agricultural products. And, that the Port of Oakland is the United States' leading exporter for refrigerated products, including beef, pork, and fresh produce -- commodities that are being hit with retaliatory tariffs.

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"It also means we are not growing because our exports are also going to China. That's our number one Transpacific trading partner on both sides of that equation," Jacob said.

Economic Professor Farhad Sabetan at Cal State East Bay said consumers will start to feel it, too. Which could mean, come Christmas, there will be empty shelves and price increases.

"Companies order six to nine months in advance for what we need for Christmas. So, we are not going to see an immediate effect. My best guess is probably July-August time frame," Sabetan said.

Experts say industries have learned from the Covid-19 pandemic. But, the constant changes, such as what's exempt and for how long, adds to the uncertainty.