Retail Container Ports Move Toward End of Peak Season

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 Move Toward End of Peak Season

WASHINGTON, D.C., November 3, 2006 — Traffic at the nation’s major retail container ports dipped slightly in September but will hit another new record in October before the annual peak shipping season comes to an end, according to the monthly Port Tracker report released today by the National Retail Federation and Global Insight.

“Coming off a record year, the peak season is winding down,” Global Insight Economist Paul Bingham said. “Ports are operating without congestion, and the truck and rail systems are handling the volume. We expect the ports to be able to accommodate the projected volumes over the next six months without significant congestion and anticipate continued acceptable performance.”

“Retailers are wrapping up their shipping season without incident, thanks in part to being able to use the Port Tracker report to closely monitor conditions at the ports,” NRF Vice President and International Trade Counsel Erik Autor said. “Port Tracker is an important tool in helping retailers measure port performance and plan accordingly.”

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 1.41 million Twenty-foot Equivalent Units (TEUs) of container traffic in September, the most recent month for which actual numbers are available. The figure was down 1.2 percent from August, when some shippers moved holiday cargo earlier than in past years, but up 5.2 percent from September 2005.

October is forecast at 1.45 million TEU (up 5.8 percent from October 2005) and should continue its status as the busiest month of the year. Traffic will begin to decline for most of the remainder of the forecast period but will nonetheless continue to be above year-ago levels. November is forecast at 1.33 million TEU (up 5 percent from November 2005), December at 1.29 million TEU (up 7.5 percent from December 2005), January at 1.24 million TEU (up 2.2 percent from January 2006) and February at 1.18 million TEU (up 11 percent from February 2006). After hitting the bottom of the shipping cycle in February, traffic will begin to build again in March at 1.28 million TEU (up 2.4 percent from March 2007). 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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