Port of Los Angeles

Port of Los Angeles Executive Director Gene Seroka on CNBC Squawk Box Asia (April 1, 2026)

Gene Seroka, executive director of the Port of Los Angeles, told CNBC Squawk Box Asia that soaring bunker fuel costs and record‑high diesel prices are reverberating through the entire supply chain. He noted that bunker fuel has roughly doubled in recent weeks while diesel has breached $7 per gallon, pushing up trucking and rail freight rates that move two‑thirds of the port’s cargo by truck and about 60% of outbound freight by rail. These energy spikes are prompting carriers to levy substantial surcharges—up to $3,000 per container on North America routes—as a risk premium tied to the Iran‑related conflict. Seroka highlighted that more than 3,000 vessels remain stranded in the Persian Gulf, with crews awaiting food, water and medical aid, underscoring the human dimension of the disruption. Despite the turmoil, the Port of Los Angeles reported a relatively stable service schedule, though it anticipates a 4‑5% year‑over‑year cargo volume dip for the first quarter, partly due to pre‑emptive shipping ahead of U.S. tariff changes. Local stakeholders are chiefly concerned about gasoline hitting $6 per gallon and the downstream impact on consumer prices. The broader implication is that any prolonged closure of the Strait of Hormuz could trigger congestion at key trans‑Pacific hubs—Singapore, Shanghai, and Korean ports—potentially reverberating through U.S. imports and inflating costs for American households.