Container Traffic at Ports Declines in October
With retailers taking a cautious view toward the holidays, the number of cargo containers arriving at U.S. ports in October was expected to decline 2.3 percent over last year.
Port Tracker, a monthly report produced by the National Retail Federation and Hackett Associates, estimates that in October about 1.3 million 20-foot containers arrived at U.S. ports.
This is a sharp contrast to previous predictions that traffic at the nation’s largest ports would see a boom in October with a 9.5 percent increase.
The NRF is predicting a 2.8 percent growth in holiday sales during November and December over last year, for a total of $465.6 billion.
But with most holiday merchandise already in warehouses and ready for delivery, Port Tracker foresees only a 1.9 percent jump in cargo activity on a year-over-year basis in November. December activity should be a tad better with a 3.3 percent rise.
“As always, retailers are being very strategic with their supply chains,” said Jonathan Gold, the retail federation’s vice president for supply chain and customs policy. “Although sales are expected to be in line with the 10-year average, retailers are keeping inventory levels extremely lean and filling their stores wall-to-wall with discounts and promotions. Unlike in 2008, when the financial crisis caught everyone off-guard, retailers have a strong understanding of the consumer mindset this Christmas.”
For the total year, cargo-container activity is expected to be slightly above 2010 with 14.76 million 20-foot containers arriving at the docks.
Next year, Port Tracker expects January cargo-container traffic to slump 8.7 percent from the year-earlier period. In February, traditionally the slowest month of the year because of Chinese New Year celebrations, traffic is predicted to decline 9.4 percent. —Deborah Belgum
