JOC 6/11/07

Traffic at the nations major retail container ports dropped below last years levels for the second month in a row in September, and is expected to continue either flat or below last years levels for the remainder of the peak shipping season, according to the monthly Port Tracker report released today by the National Retail Federation and Global Insight.

Container traffic is expected to continue at a slow pace due to weakness in the U.S. economy,Global Insight Economist Paul Bingham said. Volumes will continue to decline, but all ports are rated low for congestion, as are truck and rail operations.

The low volumes at the ports reflect retailerscautious expectations for sales during the holiday season,NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. These numbers show that retailers are carefully managing their inventories so that supply wont exceed demand.

Ports surveyed handled 1.46 million TEUs in September, the most recent month for which actual numbers are available. Thats down about 0.4 percent from August, and 1.9 percent from September, 2006. August traffic fell 1.4 percent from the year-ago month.

October, traditionally the peak month as retailers stock shelves for the holiday selling season, was estimated at about 3,300 containers short of the record high of 1.51 million TEUs set in October, 2006, or a year-to-year decline of 0.2 percent. November is forecast essentially flat at 1.41 million TEUs. December will see a year-to-year gain of 6.4 percent at 1.39 million TEUs, and January will be up 5.9 percent year-to-year at
1.37 million TEUs, the survey predicted.

February, usually a slack month, will be down 1.3 percent year-to-year at 1.29 million TEUs.

All U.S. ports covered by Port Tracker -- Los Angeles-Long Beach, Oakland, Tacoma and Seattle on the West Coast; New York-New Jersey, Hampton Roads, Charleston and Savannah on the East Coast, and Houston on the Gulf Coast -- are all currently rated lowfor congestion, the same as October.