Economic slump will reduce LA port volume

The nation's busiest port complex could see its first decline in container traffic in four years because of the housing market slump and a loss of consumer confidence that's making retailers cautious about importing goods.

Volume at the adjoining Los Angeles and Long Beach ports had been expected to increase by 5 percent to 9 percent this year over 2006 figures, but now container traffic may remain flat or even decline, officials said Friday.

The ports handled about 15.8 million cargo containers last year and they had record growth in exports this summer, but that won't be enough to offset lost import volume, Port of Long Beach spokesman Art Wong said.

October typically is the peak month for the ports as merchants stock up for holiday sales. However, volume is expected to be down slightly from last year, said Paul Bingham with Global Insight, a retail tracking group.

"Retailers have a good sense of the economy, and are planning their inventories carefully," said National Retail Federation Vice President Erik Autor. "The lower volume of containers means merchants shouldn't be left with unsold goods or forced into unplanned markdowns."

Source: Fresno Bee
October 6, 2007

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