Sluggish traffic coming into Port of L.A.

Cargo entering the port last month was flat compared with a year earlier, another sign of caution by retailers coming into the holiday season. In August, inbound shipments were off almost 6 percent. The lukewarm port activity is at odds with decent holiday forecasts (sales increases in the 2.5 percent to 3 percent range). From the WSJ:

Dick Steinke, executive director of the Port of Long Beach, says shipping volumes have posted two consecutive months of declines, and he's anticipating a double-digit drop for September. The last time the port experienced no peak was during the height of the recession in 2009, he says. Before that, the phenomenon was unprecedented. Rail companies and other shippers are reporting similar news, as retailers head into their most important season with lean inventories and a frugal outlook. When it comes to the holidays, shoppers typically find a way to splurge. But retailers' chastened outlook, and their apparent willingness to forgo sales to avoid getting stuck with unsold goods, offers a sobering read on the state of the U.S. consumer. "The concern is obviously that consumer confidence is weak," says Mr. Steinke.

It's possible that retailers are just being careful with their orders, focusing on promotional items and closely monitoring what's selling and what isn't (retailers over-ordered during the recession and then had to clear inventory with excessive markdowns). That said, sluggish activity can't be considered a great sign. One encouraging note: Outbound container traffic was up 26.6 percent. (September numbers are not yet out at the Port of Long Beach.)


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Economy stories:
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Exit interview with Port of L.A.'s executive director
L.A. developers relying on foreign investors bend a few rules
Holiday shopping: On your marks, get set... spend!

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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