Trade leaders stress regional resilience amid uncertainty

Officials and business leaders said Southern California continues to serve as a resilient global trade hub amid geopolitical tensions and shifting trade conditions, with China remaining a key trading partner in the region's trade network and global supply chains.

The remarks came during the centennial celebration of World Trade Week held in Los Angeles on Wednesday, where officials and business leaders reflected on the region's century-long role as a gateway for international trade and discussed challenges facing global supply chains.

This year's theme, "Celebrating a Century of Global Partnership, Innovation and Prosperity", highlighted the importance of trade in economic growth and international cooperation, according to Maria Salinas, president and chief executive officer of the Los Angeles Area Chamber of Commerce.

John Ackerman, chief executive officer of Los Angeles World Airports, said geopolitical conflicts are increasingly affecting aviation routes and transportation costs.

"The war in Iran is adding hours and hours to the journeys of the airplanes that come in and out of the airport and go to the Gulf region," Ackerman said. "That changes the economics for goods."

Noel Hacegaba, chief executive officer of the Port of Long Beach, also said that continuing instability in global trade and energy markets has added new pressures on logistics and transportation systems.

He pointed to conflicts in the Middle East, rising fuel prices, and evolving US trade policies as major factors reshaping shipping and manufacturing costs.

Hacegaba said China remains a major trading partner for Southern California ports.

"In 2019, cargo tied to China accounted for about 70 percent of our imports and exports. Today that's down to 60 percent," Hacegaba said. "But last year we still set an all-time record."

He noted that while trade volumes from Southeast Asian countries such as Vietnam, Thailand and Malaysia have grown in recent years, China remains central to regional manufacturing and global supply chains.

Hacegaba said the Port of Long Beach is expanding rail and cargo infrastructure to improve efficiency and maintain the competitiveness of Southern California as a key gateway for trans-Pacific trade.

Gene Seroka, executive director of the Port of Los Angeles, emphasized the importance of maintaining stable international relationships and adapting to rapidly changing trade conditions.

Seroka said businesses are shortening planning horizons because of economic uncertainty, while inflation and weaker capital investment continue to affect both companies and consumers.

Referring to recent visits to Hong Kong and cities in the Chinese mainland, Seroka said long-term international partnerships remain essential for sustaining trade cooperation and adapting to shifting global trade flows.

Dilpreet Sidhu, deputy mayor of international affairs for the City of Los Angeles, emphasized the importance of maintaining ties with China and other international partners.

"We are close to Shanghai," she said. "We hope to keep those relationships and the role that all of us play in making sure that we're projecting LA as a welcoming place for shared prosperity."