LONG BEACH, Calif. -- U.S. container ports should avoid serious congestion problems this summer and fall even though cargo volumes are building rapidly toward a record peak season, according to the July Port Tracker published by Global Insight and the National Retail Federation.

Key segments of the intermodal supply chain -- marine terminals, rail and trucking -- have been handling near-record volumes so far this year with only occasional delays reported.

"The ports are now building quickly towards peak-season monthly volume," the Port Tracker report stated. Global Insight projects a spike in container volume in August and steady growth in the ensuing months until the true peak is reached in October.

Volumes are projected to remain unusually strong in November.

As expected, imports from Asia and especially China are driving the record performance. The containerized imports are increasingly being carried on larger vessels of 8,000-TEU capacity. The larger ships are calling in Los Angeles-Long Beach, with those ports increasing market share. Overall, containerized imports through West Coast ports are increasing faster than through East Coast ports, according to the report.

Although shippers and carriers are returning to the traditional shipping pattern of concentrating the greatest growth in LA-Long Beach, the port complex has handled the volume so far and is expected to remain congestion-free through the peak season. However, occasional delays are possible, especially on the inland transportation network.

"The transportation system serving the ports will remain tight, with rail service out of Los Angeles requiring close attention, although any sustained congestion is not expected, even in the face of the new record container volume," the Port Tracker stated.

Railroads are remaining fluid by exerting tighter control over traffic flow from the ports. For example, Union Pacific Railroad reduced the frequency of one of its eastbound services from LA-Long Beach to five days per week from seven days. "The UP has also acknowledged that shipments from their Los Angeles Basin container terminals are experiencing delays of between 24 and 48 hours," the report stated.

Although eastern as well as western railroads are expected to experience occasional delays during the peak season, the U.S. rail network should be able to handle the load.

"The outlook is for a fluid rail network through the fall. The railroads' massive $8 billion 2006 capital spending program is expected to provide some benefits to intermodal shippers this year through improvements in capacity and service reliability," Global Insight stated.

In the trucking sector, increased diesel fuel costs and shortage of drivers that are already present in the industry will last throughout the peak season. Global Insight estimates that the trucking industry nationwide is experiencing a shortage of 20,000 drivers.

By Bill Mongelluzzo