Cargo Chaos on the West Coast. What It Means for Your Bottom Line

Originally published May 5, 2025. This version was rebuilt from the Port of Los Angeles director's interview, the ISM April manufacturing report and Mattress Warehouse's announcement for the FIN archive, and the facts are as of that date.

The first week of May 2025 was when the drop in China shipments showed up at the docks. In bedding, one retailer used the turmoil to grow.

The short version

• The Port of Los Angeles expected volume down about 35% in early May.
• ISM said furniture makers reported lower import volumes and the steepest production drop of any industry in April.
• Mattress Warehouse said it passed 500 stores by acquiring 176 locations.

Fewer ships

Port of Los Angeles executive director Gene Seroka said shipping volume would be down about 35% from a year earlier in the first week of May, based on the port's own data on loadings in Asia, with a number of major retailers stopping all China shipments because of tariffs. He said China made up about 45% of the port's business.

Fewer arrivals in May meant thinner furniture inventories by early summer, especially for goods with no alternative source.

Furniture factories feel it

The ISM manufacturing report released May 1 put the April PMI at 48.7%, and its Imports Index fell into contraction at 47.1%. Furniture and related products was one of six industries that contracted, and it led the list of industries reporting lower production.

Furniture makers were also among the industries reporting lower import volumes, slower supplier deliveries and higher raw material prices. Furniture topped the list of industries saying their customers' inventories were too low, a sign that the slowdown at the docks was already reaching the factory floor.

Mattress Warehouse grows

Mattress Warehouse said it acquired 176 store locations, including 73 former Mattress Firm stores and 103 Sleep Outfitters stores, taking it to more than 500 locations.

Watch the docks

The port data and the factory survey gave retailers a few weeks' warning on inventory gaps. Meanwhile, consolidation in bedding created bigger regional chains.

Related on FIN

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Sources

• CNBC, Interview with Port of Los Angeles executive director Gene Seroka (Apr. 29, 2025)
• Institute for Supply Management, April 2025 Manufacturing ISM Report On Business (May 1, 2025)
• Mattress Warehouse, Surpasses 500 locations with acquisition of 176 stores