Freight News, Sea


LA chief applauds peace moves but there is a long way to go

[ June 18, 2026   //   ]

The peace treaty signed between the US and Iran on 19 June was encouraging for trade but it will be a long time before world shipping returns to normality, Port of Los Angeles executive director Gene Seroka told a media briefing on 16 June.

He said that while reopening of the Strait of Hormuz would ease world energy prices and allow shipping movements through the region to resume, “we have to be cautious”.

Firstly, he pointed out, the memorandum of understanding signed was not the end of the process but rather the start of continued negotiations while ship operators would be very mindful of the safety of their crews before sending vessels into the region. Moreover, even if ships did start to resume operations in the area, it would take many months before schedules could be returned to normal. It was also unclear whether tolls would be levied on ships transiting the Straits, nor was it known to what extent to which the area had been mined.

Moreover, oil prices were still a third higher than they had been immediately before the conflict.

That said, the Port of Los Angeles continued to operate smoothly and there had been no return of vessels queueing for berths as had been seen during the Covid pandemic. The port handled 840,165 TEUs in May, 17% above last year and imports increased amid continued uncertainty surrounding trade policy and global supply chains.

“Cargo demand is resilient despite everything that has happened in the world,” Seroka declared. He added that amidst the global uncertainty, traders were taking advantage of and windows of stability that did appear and speeding goods through to take advantage of them.

US exports from Los Angeles however were 8% down on their five year average and this remained an area of concern, particularly agri exports.

World Shipping Council president and chief executive Joe Kramek described the agreement as  a positive development and an encouraging step toward restoring safety in a vital maritime corridor. He said: “The immediate priority is safe passage for the seafarers and ships still stranded in the area. Coordinated risk assessments, mine mitigation operations, and vessel traffic operations should be prioritized as part of these efforts.”

“This conflict has again shown why the fundamental principle of freedom of navigation must be respected and protected. Ships must be able to pass through the Strait of Hormuz safely, securely and without toll.

“Ocean carriers are closely monitoring developments and will make operational decisions in a complex environment, based on the best available information and risk assessments.”

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