NRF: Retail Container Traffic to Pick up in Fall
September 13, 2011,
This finding is according to the monthly Global Port Tracker report released earlier this month by NRF and Hackett Associates.
"Cargo numbers have been down this summer, but that's a reflection of last year's unusual shipping patterns more than the economy," explained Jonathan Gold, vice president for supply chain and customs policy, NRF. "The economy continues to face challenges, but job growth has been steady, and retailers have been adding jobs themselves as sales improve. Cargo figures for this fall clearly show that retailers are expecting a healthy holiday season."
The Global Port Tracker covers the U.S. ports of Long Angeles/ Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Hampton Roads, Charleston and Savannah on the East Coast, and Houston on the Gulf Coast.
Collectively, these ports handled 1.25 million Twenty-foot Equivalent Units (TEUs), In June, import cargo volume dipped 2.6% compared to May and 5% dip compared to June 2010, breaking an 18-month of streak of year-over-year monthly volume gains.
"Rather than indicating an economic downturn, however, the numbers are a skewed comparison against higher-than-normal numbers last summer, when fears of shortages in shipping capacity caused many retailers to bring holiday merchandise into the country earlier than usual. Actual retail sales have seen 12 straight months of growth," Global Tracker explained.
Year-over-year increases are expected to resume in September, which is forecast at 1.48 million TEU, up 10.4% from last year. October is forecast at 1.46 million TEU, up 8% from last year; November at 1.31 million TEU, up 6.2%; and December at 1.18 million TEU, up 3%.
One TEU is one 20-foot cargo container or its equivalent. The first half of 2011 totaled 7.15 million TEU, up 3.9% from the first half of 2010, and the full year is forecast at 15.28 million TEU, up 3.6% from 2010. Imports during 2010 totaled 14.7 million TEU, a 16% increase over unusually low numbers in 2009.
While cargo volume is expected to increase through this fall's holiday shipping cycle, Hackett Associates founder Ben Hackett said a number of key economic indicators are raising concerns about future cargo growth.
"Industrial production in China is weak, bulk commodity imports are declining, and ports are beginning to report reduced export volumes," Hackett said. "In the U.S., we have lower private consumption, lower government expenditure and lower indices like the purchasing managers' index. This is cause for concern because it could lead to lower growth of trade volumes."