Source: Supply Chain Dive
Date: 21st August 2026 

The Port of Los Angeles is preparing for cargo volumes to potentially rise around 5% as continuing Red Sea disruption and Panama Canal restrictions encourage shippers to reconsider routes into the United States.

The Port of Los Angeles is preparing for a possible increase in cargo over the next six to eight months as global shipping disruptions create renewed interest in U.S. West Coast gateways.

The port is planning for a scenario in which volumes increase approximately 5% year over year, although port officials stressed that the increase is not guaranteed.

Preparations are already being discussed with terminal operators, shipping lines, trucking companies and dockworkers.

Red Sea and Panama risks could shift cargo west. Two major maritime routes are influencing the outlook.

Security concerns continue to affect shipping through the Red Sea and Suez Canal, despite some carriers gradually testing or resuming selected transits.

At the same time, the Panama Canal is implementing draft restrictions as it manages water availability and prepares for potential drought conditions.

Together, these risks could make routing Asian cargo directly through U.S. West Coast ports more attractive for some shippers, particularly when compared with longer or less predictable alternatives to the East Coast.

Los Angeles is already handling strong volumes. The potential shift comes after an already active summer.

The Port of Los Angeles processed 960,464 TEUs in July, its second-busiest July on record.

Although total throughput was 6% lower year over year, it remained 7.5% above the port’s five-year July average.

July included:

• 499,552 TEUs of loaded imports
• 111,776 TEUs of loaded exports
• 349,137 TEUs of empty containers

The port also expects another strong month in August, although some cargo that would normally arrive later in the peak season was brought forward earlier.

What This Means

• For companies importing from Asia, the development reinforces the importance of evaluating West Coast versus East Coast routing based on more than ocean freight rates alone.
• If Red Sea uncertainty and Panama Canal restrictions persist, West Coast gateways could offer advantages in transit time and potentially overall transportation cost for certain supply chains.
• However, increased cargo concentration could also place additional pressure on terminal capacity, trucking, rail connections and equipment availability.

The situation demonstrates how disruption at one maritime chokepoint can quickly influence cargo flows thousands of kilometres away.

Rather than relying on a single gateway strategy, importers should evaluate ocean routing, port conditions, inland transportation and total landed cost together.

With Los Angeles preparing for potentially higher volumes, maintaining flexibility between U.S. gateways could become increasingly important during the coming months.