Retail Container Ports Break 2005 Records

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

Retail Container Ports Break 2005 Records

WASHINGTON, D.C., September 11, 2006 — Traffic at the nation’s major retail container ports has already topped the highest level hit during 2005 and will set additional new records before the 2006 peak shipping season is over, according to the September Port Tracker report released today by the National Retail Federation and Global Insight.

“The system is handling volumes that have never been seen before, thanks mainly to continued growth in the demand for Asian imports,” Global Insight Economist Paul Bingham said. “Despite the growth in volume, the outlook is for continued acceptable performance over the next six months. Shippers should be able to make it through the remainder of the peak season without significant congestion.”

“It’s obvious that port volume is growing, but Port Tracker gives retailers precise numbers to help them plan for that growth,” NRF Vice President and International Trade Counsel Erik Autor said. “Conditions at the ports are crucial to the retail supply chain and retailers need this kind of solid information.”

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 1.38 million Twenty-foot Equivalent Units (TEUs) of container traffic in July, the most recent month for which actual numbers are available. The figure was up 1.7 percent from June and 7.1 percent from July 2005.

July’s number topped 2005’s year-long peak of 1.37 million TEU set last October, and numbers well above the 2005 peak are expected to be hit through the remainder of the season: August is forecast at 1.44 million (up 8 percent from August 2005), September at 1.4 million (up 4.1 percent from September 2005) and October – the traditional annual peak of the shipping season – at 1.45 million (up 6.2 percent from October 2005). During the remainder of the six-month forecast, numbers will drop off but will still remain higher than year-ago numbers. November is forecast at 1.34 million (up 6.1 percent from November 2005), December at 1.3 million (up 7.9 percent from December 2005), and January at 1.24 million (up 2.2 percent from January 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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