Cargo Container Traffic at the Nation's Ports Slowest in Four Years
The stalled economy means one thing at the nation’s ports: Cargo container traffic is shaping up to be the lowest since 2004.
Volumes aren’t expected to increase until at least March, according to the National Retail Federation’s “Port Tracker” report, which was conducted by economic-forecasting firm IHS Global Insight.
Cargo volume for 2008 is predicted to be 15.3 million 20-foot containers, which is a 7.1 percent drop from 2007 and the lowest total since 2004, when 14 million containers moved through the nation’s ports.
“Retail sales forecasts this year are the lowest they’ve been in more than half a decade, and the cargo volume we’re seeing reflects those numbers,” said Jonathan Gold, NRF’s vice president for supply chain and customs policy. “The balancing act between supply and demand is tougher than ever because retailers want to make sure they have enough merchandise on the shelves to satisfy customers and not be forced into unplanned markdowns to move excess inventory once the holidays are over.”
October’s traffic was estimated at 1.36 million containers, down 5.7 percent from the same period last year. In September, the most recent month for which actual numbers are available, the volume was at 1.33 million containers, down 9.8 percent from the same period in 2007.
November’s traffic is predicted to come in at 1.26 million containers, down 8.7 percent from last year. December is forecast to be 1.21 million containers, a 5.5 percent drop from last year.
The first year-over-year increases aren’t expected until March, when a 2.8 percent jump to 1.18 million containers is predicted.
At the Port of Los Angeles, container traffic this year compared with last year is down 4.1 percent from January to September with 5.82 million containers. At the Port of Long Beach, container traffic this year compared with last year dipped 10.5 percent from January to September with 4.9 million containers.
“Port Tracker” surveys traffic volumes at the country’s major ports, such as the ports of Los Angeles, Long Beach and Oakland, Calif.; Seattle and Tacoma, Wash.; New York/New Jersey; and Charleston, S.C. —Deborah Belgum
