Retail Container Ports Could See Fall Traffic Levels in August

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

 

Retail Container Ports Could See Fall Traffic Levels in August

WASHINGTON, D.C., August 8, 2006 — Traffic is growing so rapidly at the nation’s major retail container ports that August could tie October as the busiest month of the year, according to the August Port Tracker report released today by the National Retail Federation and Global Insight.

“The ports are already in peak season,” Global Insight Economist Paul Bingham said. “Nationally, August volumes are expected to be as high as the peak projected for October, and we’re going to see the record numbers continue into fall. The increase in volume is going to challenge everyone’s ability to perform, but the ports themselves and the truck and rail systems are all operating OK so far. We expect shippers will make it through peak season without significant congestion.”

“Port Tracker has been a very valuable tool this summer,” NRF Vice President and International Trade Counsel Erik Autor said. “With traffic at these levels, you can’t just sit back and hope for the best. You have to have some way to predict what’s going to happen, and that’s what Port Tracker is for.”

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 1.36 million Twenty-foot Equivalent Units (TEUs) of container traffic in June, the most recent month for which actual numbers are available. The figure was up 3.5 percent from May and 8.6 percent from June 2005.

June’s number was just under 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 this summer and fall: July is forecast at 1.42 million (up 10.3 percent from July 2005), August at 1.46 million (up 9.9 percent from August 2005), September at 1.42 million (up 5.7 percent from September 2005) and October at 1.46 million (up 6.5 percent from October 2005). As in past years, numbers are expected to fall off after October, dropping to 1.35 million in November (up 7.1 percent from November 2005) and 1.3 million in December (up 8.6 percent from December 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.

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

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.

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