Port Of Los Angeles Warns 'Difficult Decisions' Ahead As Shipments From China Cease

[Laodicean60]

To be fair, the expression "All tarrifs do...." should literally be understood as "The only thing tarrifs do...".

And that seems to be a simplified version of what tarrifs do.

But I never claimed to have a good vocabulary either.

 

[essentialsaltes]

Low-priced crap on the shelves at Target? That's not essential. But the low prices make a lot of Americans happy.

Trump agrees with me! Per atrupar

Trump on China: "They made a trillion dollars with Biden selling us stuff. Much of it we don't need. Somebody said, 'oh, the shelves are gonna be open.' Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more."

Maybe that's the problem with kids today: too many dolls.

 

[Desk trauma]

Trump agrees with me! Per atrupar

Trump on China: "They made a trillion dollars with Biden selling us stuff. Much of it we don't need. Somebody said, 'oh, the shelves are gonna be open.' Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more."

Maybe that's the problem with kids today: too many dolls.

If Covid taught us anything it was that Americans will come together and shoulder adversity together, facing hardship willingly… yeah couldn’t type that with a straight face.

 

[rambot]

Trump agrees with me! Per atrupar

Trump on China: "They made a trillion dollars with Biden selling us stuff. Much of it we don't need. Somebody said, 'oh, the shelves are gonna be open.' Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more."

Maybe that's the problem with kids today: too many dolls.

Yeah if there's ONE thing American children don't have a reputation for, it's being entitled.

 

[7thKeeper]

How will you import things from non-chinese sources when china is the only source?

And also, when you've also tariffed those other sources as well.

 

[Laodicean60]

If Covid taught us anything it was that Americans will come together and shoulder adversity together, facing hardship willingly… yeah couldn’t type that with a straight face.

J hoped you were serious

 

[Laodicean60]

The headlines below lead some to believe the shelves in our stores will soon be empty. Moreover, reminiscent of 2020, an inflation spike due to fractured supply lines is imminent. Let’s provide context to help make sense of the headlines and determine whether the plunge of Chinese inbound container ships to US ports represents truth or easy narratives.

• China Freight Ship Traffic To Busiest US Ports Sees Steep Drop – CNBC
• Chief economist warns of collapse after free fall in container traffic to the US -Shipping Watch.
• Traffic At The Port of Los Angeles Set To Plunge- LA Times
• Plunging LA Port Volumes Spell Trouble For Truckers- FreightWaves

As shown on the left, the plunge in traffic of recently departed container ships from Chinese ports is startling. However, it only reverses the surge to US ports in the month prior. As previously noted, companies were stockpiling goods to avoid tariffs. Thus, with inventories higher than usual, importers’ needs fell in April, resulting in fewer inbound container ships. The graph on the right shows the two largest California ports where China’s goods typically enter. The recent decline at these ports is no different than so many others in the last 30 years.

Further, even if there is a prolonged slump in goods from China, we must recognize that China ships goods from other countries’ ports, like Vietnam, to avoid scrutiny. Thus, total inbound ship traffic is a more critical gauge than ships from Chinese ports.

Even if the supply of goods is curtailed, the inflationary pressure will not rival that of 2021/22. The prior inflation was partly due to diminished supplies, but equally important was the massive stimulus that drove demand. Today, demand is weakening, so half of the inflation recipe is missing.

Port Plunge Myths: Why Headlines Don't Tell The Whole Story

Discover the truth behind headlines about port traffic and learn what it means for supply chains and store shelves.

realinvestmentadvice.com

 

[DaisyDay]

This will be interesting. Even a 10% tariff can be an effective motivator for suppliers to shift locations. But since all nations have that, it makes the choices easy. If the average cost + tariffs is less in the USA, then most would open a factory in the USA. Once you hit differentials in tariffs above the ten percent line, it gets harder. You still look at average total costs of production + the tariff rates. You would relocate your plant to either the USA or whatever nation would give the lowest average cost of production. The problems with the Trump policies for the ports etc. is most expect them to be transitory as the previous poster suggests. Until there is clarity there is likely to be shortages or far higher prices for most goods from Asia, which I assume is what the California ports handle the most. At 100% tariff levels it is so costly, that you might as well embargo goods from China because there is no way they are competitive in the long run at those tariff levels.

Today, Trump said that China will eat the tariff costs. This sounds great, but the reality is that most goods from China have low profit margins. They might take below cost prices for a very brief time, but China is shopping for other markets for many shipments already produced and they will adjust factory output to match the rest of the world minus what they previously sold to the USA.

The next step for China perhaps should be to develop a robust middle class.

 

[durangodawood]

China doesn't make all our toilet paper, do they???

 

[rambot]

J hoped you were serious

Well sure....everyone would HOPE that but demonstrably, that was proven false.

 

[Desk trauma]

China doesn't make all our toilet paper, do they???

No but buy double next time you’re in the store as that’s going to be the first panic buy.

 

[Richard T]

The next step for China perhaps should be to develop a robust middle class.

That sounds good and hopefully it will occur for them one day. For the near term though they are still responding to a real estate bubble, a public financing bubble and now they face a reduction in US exports. So some pain still up ahead. They did report some 5% + growth last quarter though. China’s economy grows 5.4% in first quarter ahead of full-blown US trade war

 

[essentialsaltes]

Trump on China: " Somebody said, 'oh, the shelves are gonna be open.' Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more."

Mattel plans to raise prices on some toys to offset tariff costs​

 

[Landon Caeli]

Mattel plans to raise prices on some toys to offset tariff costs​

I remember Toys 'R' US when I was growing up. I just asked my 13 year old if she ever heard of Mattel before, and she said no...

...Sometimes things just phase out.

 

[GoldenBoy89]

I remember Toys 'R' US when I was growing up. I just asked my 13 year old if she ever heard of Mattel before, and she said no...

...Sometimes things just phase out.

Mattel maybe not but has she ever heard of Barbie or Hot Wheels?

 

[essentialsaltes]

I remember Toys 'R' US when I was growing up. I just asked my 13 year old if she ever heard of Mattel before, and she said no...

What toy companies can she name? Sanrio?

 

[FreeinChrist]

China doesn't make all our toilet paper, do they???

Yeah, but the rolls are really, really small. I bought some via Amazon in 2020 and couldn't believe how small the rolls were. I never used it - only kept it too show people and laugh.

 

[Aryeh Jay]

Yeah, but the rolls are really, really small. I bought some via Amazon in 2020 and couldn't believe how small the rolls were. I never used it - only kept it too show people and laugh.

Not that I am an expert or have done any informal studies on the subject, but having been to both China (Hong Kong) and the United States, I would wager the posterior region of the average American is several times larger than the average Chinese person, hence the larger size of the roll for Americans.

But then, it could also be we just like things bigger, like trucks.

 

[Aryeh Jay]

I remember Toys 'R' US when I was growing up. I just asked my 13 year old if she ever heard of Mattel before, and she said no...

...Sometimes things just phase out.

If it's Mattel, it's swell.

 

[wing2000]

If Covid taught us anything it was that Americans will come together and shoulder adversity together, facing hardship willingly… yeah couldn’t type that with a straight face.

Yes, I'm sure Americans will sacrifice for the greater good. Only two dolls under the Christimas tree this year!