Major California Ports See Shift Away From China Exports

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Written by Danny Levin, Deputy Editor for IIR News (Sugar Land, Texas)

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Summary

The Port of Los Angeles and neighboring Port of Long Beach, two of the top U.S. ports for containerized exports, are seeing exports shift away from China.

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Exports Moving Away from China

"Exports to China look dismal," Port of Los Angeles Executive Director Gene Seroka said in a media briefing after the busiest container port in the country handled 8% less loaded export containers in January year-over-year. The 104,297 20-foot equivalent units (TEUs) were the lowest monthly level in nearly three years.

"There's not much that the United States is exporting to China these days," trade expert Chad Bown, a senior fellow at the Peterson Institute of Economics, said at the briefing alongside the executive director.

Seroka pointed specifically to soybean shipments to China from the port dropping 80% last year. For more information, see February 9, 2026, article - U.S. Soybean-Crushing Facilities Add Billions to Nation's Project Spending.

Bown also noted there's an uncertain trade landscape moving into 2026, which could be impacted by the U.S. Supreme Court's pending ruling on the majority of Trump's tariffs and the July review of the U.S. Mexico-Canada Agreement.

In all, the Port of Los Angeles processed 812,000 TEUs of cargo in January, down 12% compared to last year.

In a related press release, Seroka cited three reasons for that dip. January's figure is being compared to elevated levels in 2025--when inventories were being restocked to get ahead of tariffs--and inventories remain "slightly higher, reflecting the earlier cargo surge and a more cautious restocking pace."

Lastly, "U.S. trade policy continues to keep everyone on edge. However, the American consumer has shown remarkable resilience. And purchase orders that go out three months in advance to Asia look stable, a good sign."

Adjacent to the Los Angeles port, the Port of Long Beach also is seeing a shift away from exports to China. "Just a few years ago, in 2019, China, by itself, accounted for about 70% of our total volumes inbound and outbound," said Noel Hacegaba, chief executive of the Port of Long Beach, in an interview with CNBC. "Today, that's down to 60%. We have seen a 10 percentage- point swing of trade shifting to Southeast Asia countries like Vietnam, Thailand, Cambodia and Malaysia."

U.S. exports could very well move to other countries as well. A recent interim U.S.-India trade agreement, among other things, includes India eliminating or reducing tariffs on "all U.S. industrial goods and a wide range of U.S. food and agricultural products" and increasing imports of American energy, coal and agricultural products. The parties are expected to sign the agreement by mid-March.

The Georgia Ports Authority (GPA)--which operates the third-busiest cargo port in the U.S. (Port of Savannah) and the leading gateway for automobiles (Port of Brunswick)--recently applauded the agreement. "GPA has long thought India will be the key to our future success with the market proximity our U.S. East Coast gateway port offers," GPA Chief Executive Officer Griff Lynch said in a press release. "In time, this will bring more volumes to Georgia Ports." According to the release, the GPA handled 22% of India's containerized trade on the U.S. East Coast in fiscal-year 2025.

U.S. Cargo Ports are Home to Capital Spending

Industrial Info is tracking $20 billion worth of active and planned projects at cargo ports across the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can view a full list.

Last year, the Port of Long Beach announced a 10-year (2026-2035) capital plan of more than $3.2 billion; about 40% is attributed to the Pier B On-Dock Rail Support Facility, which is designed to double the port's capacity to handle cargo by train. Construction of the approximately $200 million first phase will begin later this year, with full completion expected in 2032. Subscribers can read related project reports.

Also underway is Phase 3 of a $3.2 billion effort to improve navigation at the Soo Locks shipping channel along St. Mary's River in Michigan, which is operated by the U.S. Army Corps of Engineers (USACE). The project involves adding a new ship lock, which works to raise ships to higher or lower elevations. Soo Locks serves as a passageway for more than 80 million tons of commercial commodities per year, according to the USACE. Phase 3 is estimated to wrap up in summer 2030.

Key Takeaways

• Two of the U.S.' largest cargo ports are seeing exports shift away from China.
• Countries in Southeast Asia as well as India are expected to be major beneficiaries.
• U.S. cargo ports are investing to boost their cargo handling capacity.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).