Retail Container Ports Continue to Hit New Records

For Immediate Release
NRF: J. Craig Shearman (202) 626-8134 shearmanc@nrf.com
Global Insight: Paul Bingham (202) 481-9216 paul.bingham@globalinsight.com

Retail Container Ports Continue to Hit New Records

WASHINGTON, D.C., October 6, 2006 — Traffic at the nation’s major retail container ports hit new records over the summer and is expected to continue to do so as the annual shipping cycle reaches its peak this month, according to the monthly Port Tracker report released today by the National Retail Federation and Global Insight.

“We are now in the height of peak season, with October volumes expected to be the highest of any month this year,” Global Insight Economist Paul Bingham said. “The ports are operating without congestion, and truck and rail systems are handling the record volumes well. We expect the ports to be able to handle these volumes without significant congestion, and we expect continued acceptable performance over the next six months.”

“With volume growing this quickly, retailers are depending on Port Tracker for up-to-date information more than ever,” NRF Vice President and International Trade Counsel Erik Autor said. “These numbers are being watched very closely by the retail industry.”

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 last month.

Nationwide, the ports surveyed handled 1.44 million Twenty-foot Equivalent Units (TEUs) of container traffic in August, the most recent month for which actual numbers are available. The figure was up 5 percent from July and 8.4 percent from August 2005.

With volume continuing to grow, the August number has already topped 2005’s year-long peak of 1.37 million TEU, set last October. September is forecast at 1.4 million TEU (up 4.9 percent from September 2005) and October at 1.46 million TEU (up 6.5 percent from October 2005). After the holiday-driven shipping season peaks in October, volume over the six-month period of the forecast will begin to decline to 1.35 million TEU in November (up 6.7 percent from November 2005), 1.3 million TEU in December (up 8.3 percent from December 2005), 1.26 million TEU in January (up 3.2 percent from January 2006) and 1.19 million TEU in February (up 11.6 percent from February 2006). 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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