Unidentified Los Angeles port officials and one major retail industry association are predicting a slump in container traffic because of the declining US housing market and decreasing consumer confidence, reported LA radio station KTLA on its website.

Despite four years of record growth in Los Angeles and Long Beach, unnamed port officials have now reported that volumes won't match expectations set earlier this year of between five to nine per cent. Instead, they say the nation's busiest seaport will see year-on-year decline for the first time since 2002.

Retail industry representatives expect flat growth or even a one to two per cent decline by year's end.

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

August through October are usually the busiest shipping months as retailers import more to shelves for fall and winter holidays.

The ports at Los Angeles and Long Beach together handled about 15.8 million TEU in 2006.