Cargo Traffic Still Decreasing, NRF Reports
by Christina Lee on October 6th, 2008
Even with the holiday season drawing near, store owners are continuing to brace themselves for slow sales with smaller inventories, according to National Retail Federation reports.
In addition, the trade group expects a 6 percent drop in yearly retail cargo traffic – 2 percent more than its prediction made less than two months ago.
For U.S. ports, October is traditionally the busiest time of the year, as store owners stock up for the holiday months. It is also when the National Retail Federation usually expects to see year-to-year growth. The D.C.-based trade group even predicted in August that October traffic levels would not fall below that of last year, despite month-to-month decreases reported since May.
The National Retail Federation has since released a report estimating that 1.4 million TEU (20-foot equivalent units) of cargo will flow through ten U.S. ports this month – a 2.9 percent decrease from October 2007.
“Retailers are tightening up their inventories to reflect what they expect to be able to sell during the holiday season,” Jonathan Gold, the group vice president for supply chain and customs policy, said in a statement.
In January, the National Retail Federation forecasted for the year a mere 3.5 percent growth in retail sales. In September, the group also predicted that holiday season sales will rise by just 2.2 percent from last year. Both estimates are the lowest increases predicted since 2002.
Article Source: http://www.nrf.com