Projected container volume in 2008 to be lowest since 2004

November 10, 2008 by SwizStick  
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More gloomy economic news from JOC Online as retailers and importers scale back inventories, resulting in substantial drops in container volumes.

Volume is projected to total 15.3 million TEUs for the year, compared with 16.5 million TEUs in 2007, off 7.1 percent and the lowest total since 2004, when 14 million TEUs moved through the ports. The survey blamed the continuing downturn in the U.S. economy.

The estimate is down from the survey’s estimate of 15.43 million TEUs in October.

“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,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “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.”

Of course, what goes down must come up, although in this case it may be awhile. Everything I’m reading says the U.S. economy will be in the doldrums through most if not all the first half of 2009. If and when container volumes start to pick up, it will be interesting to see which ports pick up first and whether LA / Long Beach sees a reduction in market share.

Retail container traffic down

U.S. Ports – Cargo volume expected to drop

Six percent decline in annual container volumes?

Port of Tacoma anticipates a 4% decline in cargo