Repeat of Past Congestion Not Expected at Retail Ports

Repeat of Past Congestion Not Expected at Retail Ports

Washington, DC, June 5, 2006 — The nation’s major retail container ports are operating smoothly, and little of the congestion that has been problematic in past years is expected this summer or fall, according to the June Port Tracker report released today by the National Retail Federation and Global Insight.

“The ramp-up into peak season is now under way, with monthly container volume building through October,” Global Insight Economist Paul Bingham said. “There is no congestion at the ports now, and the truck and rail systems are operating fluidly. A number of challenges with continued growth in volume remain, and there are concerns with port trucking for later this year, but the backlog of ships without reservations at the Panama Canal has been reduced compared with last month. The bottom line is that we expect the industry to get through the 2006 peak season without serious port congestion.”

“This is a relief compared with the labor shortages and port shutdowns we’ve seen in recent summers,” NRF Vice President and International Trade Counsel Erik Autor said. “Congestion isn’t in the forecast but that doesn’t mean we stop watching. Port Tracker will continue to monitor port conditions and will be prepared to alert shippers to any change.”

All ports covered by Port Tracker – Los Angeles/Long Beach, Oakland, Tacoma and Seattle on the West Coast, and New York/New Jersey, Hampton Roads, Charleston and Savannah on the East Coast – are currently rated “low” for congestion, the same as May.

Nationwide, ports surveyed handled 1.32 million Twenty-foot Equivalent Units (TEUs) of container traffic in April, the most recent month for which numbers are available. The figure was up 6.2 percent from March and 10 percent from April 2005. Over the six-month forecast period of the report, volume is expected to climb to a peak of 1.49 million TEU in October, up 8.7 percent from October 2005. One TEU is a 20-foot cargo container or its equivalent.

Port Tracker, which is produced by the economic research, forecasting and analysis firm Global Insight for NRF, looks at inbound container volume, the availability of trucks and railroad cars to move cargo out of the ports, labor conditions and other factors that affect cargo movement and congestion. Subscription information is available at www.nrf.com/porttracker or by calling (202) 783-7971.

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.4 million U.S. retail establishments, more than 23 million employees - about one in five American workers - and 2005 sales of $4.4 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.

Global Insight Inc. is a privately held company that brought together the two most respected economic information companies in the world, DRI and WEFA. Global Insight provides the most comprehensive economic and financial information available on countries, regions and industries, using a unique combination of expertise, models, data and software within a common analytical framework to support planning and decision-making. Through the world's first same-day analysis and risk assessment service, Global Insight provides immediate insightful analysis of market conditions and key events around the world, covering economic, political and operational factors. The company has over 3,800 clients in industry, finance and government with revenues in excess of $80 million, over 600 employees and 23 offices in 13 countries covering North and South America, Europe, Africa, the Middle East and Asia. www.globalinsight.com

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