Consumers don’t have to worry about products arriving in time for the holidays, though they may be facing higher prices, say officials at one of America’s largest ports.

Imports at the Port of Long Beach are flowing smoothly through its facilities despite the government shutdown and tariff uncertainties, port executives said. Still, they acknowledge that the volume and prices of products in the millions of containers coming through the port suggest that imports are becoming more costly and consumers are more cautious.

Until now, retailers, manufacturers and other intermediaries have absorbed much of the cost of tariffs, but that is changing as it becomes more apparent which tariffs are here to stay, Mario Cordero, chief executive of the Port of Long Beach, said Friday during a virtual news conference.

“Consumers will likely see price escalation in the coming months as shippers continue to pass along the cost of tariffs on goods, and a higher percentage of these costs will be passed on to the consumer,” he said.

Cordero, who drinks Starbucks coffee, said he’s seen the price of a cup of coffee increase by 15% and that more consumers are going to discount stores to find deals. However, potential price hikes could be offset if the United States and China strike further trade agreements.

The Port of Long Beach, a gateway for trade between the United States and Asia-Pacific, released new data that offers a glimpse into how President Trump’s on-again, off-again tariffs are affecting goods imported from key trade partners, such as China.

This week, the U.S. Supreme Court also started to hear arguments as the justices examine the legality of Trump’s tariffs.

Over the past year, the port saw a drop in the movement of containers filled with certain goods such as winter apparel, kitchen appliances and toys that people typically buy as gifts, a sign that consumers are likely wary about spending.

Still, the impact of tariffs on cargo volume hasn’t been as bad as some experts predicted. Cordero said some experts had projected that the port could see as much as a 35% drop in cargo volume.

“Clearly today, it’s fair to say that the worst scenarios some predicted did not occur,” Cordero said. “The challenges were many, and there’s no doubt that many companies and their workers suffered, but cargo volume is turning out to be just as high this year as it was last year.”

In fiscal year 2025, which runs from October 2024 to September 2025, the port surpassed 10 million 20-foot equivalent units (TEUs) for the first time, up 11% from the same period last year. TEU is a measurement used to describe cargo capacity for container ships and terminals.

While the port saw a decline in the amount of TEUs moved in October compared with the same period in 2024, Cordero said he thinks the port will end 2025 in “positive territory.”

In October, there were 839,671 TEUs moved. That’s because retailers and shippers started shipping goods earlier than normal to avoid fees and to stock up their warehouses because of tariffs.

The Port of Long Beach is an economic engine for California. Officials say it helps create 691,000 jobs in Southern California. More than 2.7 million U.S jobs are connected to the Port of Long Beach, they say.

Hundreds of flights across the United States were canceled starting on Friday, with deeper cuts looming in the coming days.

Federal Aviation Administration and Transportation Department officials have said the traffic reduction is necessary to ease pressure on air traffic controllers, some of whom have been calling in sick and working second jobs because they have not been paid during the longest government shutdown in U.S. history.

The officials identified 40 airports where flights should be cut in phases, with the goal of reducing activity by 10 percent by the end of next week.

The disruptions have rippled to other airports but, at least so far, they have appeared to be relatively limited. Airlines focused the first wave of cancellations on shorter, regional flights, and major airports were working largely as normal on Friday. But widespread concern that the situation could worsen brought home the effects of the government shutdown to many more Americans.

The reduction in traffic comes weeks before the busy holiday travel season begins in the United States. The airports that have already been affected range from large hubs to smaller destinations. They are in blue states and red states, spread across the country.

Here is a look at how cuts at affected airports compare to cancellations at those hubs this time last year: