Retail port traffic down 7% in 2008

Retail port traffic down 7% in 2008 Cargo volume at the nation’s major retail container ports was 15.3 million TEUs in 2008, 7.1 percent less than in 2007, the lowest level since 2004 when 14 million TEU moved through the ports.
   The National Retail Federation and IHS Global Insight said their monthly Port Tracker report found year-over-year volumes fell for the 17th straight month in December.

Gold

   “2008 was a slow year for the ports for the simple reason that it was a slow year for retail sales,” said Jonathan Gold, NRF vice president for supply chain and customs policy. “We don’t expect a significant increase in traffic at the ports until retail sales return to normal levels, and even then retailers will be careful not to overstock.”
   U.S. ports surveyed handled 1.23 million TEUs in November, the last month for which actual numbers are available. That was down 10.3 percent from the 2008 peak of 1.37 million TEUs set in October and down 11.8 percent from November 2007. December was estimated at 1.2 million TEUs, down 6.4 percent from December 2007. The last month to see a year-over-year increase was July 2007, when the 1.44 million TEUs moved through the ports was up 3.4 percent from July 2006.
   Looking forward, Port Tracker said January is forecast at 1.16 million TEUs, down 6.3 percent from January 2008; and February is forecast at 1.1 million TEUs, down 11.1 percent from 2008. March is expected to be up 1.1 percent from a year earlier at 1.17 million TEUs, but April is expected to decline 2.6 percent from 2008 at 1.23 million TEUs. May is forecast at 1.25 million TEUs, down 4 percent from last year.

Bingham

   “Between the economy and the customary winter impact of the slow season, port traffic is very weak,” said Paul Bingham, IHS Global Insight economist. “Port traffic is projected to continue to be very slow due to the underlying weakness in demand.”
   All U.S. ports covered by Port Tracker — Los Angeles-Long Beach and Oakland, Calif., Seattle and Tacoma, Wash., on the West Coast; New York-New Jersey, Hampton Roads, Va., Charleston S.C., and Savannah, Ga., on the East Coast, and Houston on the Gulf Coast — are rated “low” for congestion, the same as last month.