UPDATE 1-US container traffic seen down 11.8 pct H1 '09

(Adds port-by-port breakdown, railroad traffic)

LOS ANGELES Feb 6 (Reuters) - Retail container traffic at major U.S. and Canadian ports is forecast to fall 11.8 percent in the first half of 2009 as the global economic downturn bites into shipping volume, industry watcher Port Tracker reported on Friday.

In 2008, retail container volume fell 7.9 percent, according to Port Tracker, issued by the National Retail Federation and consultancy IHS Global Insight.

December cargo volume was down 13.9 percent from November and down 17.2 percent from December 2007.

December is the 18th consecutive month of lower year-on-year decreases in cargo volume, Port Tracker reported.

Cargo volume is at its lowest level at North American ports since 2004, the report showed.

"(Last year) was one of the most challenging years retailers have seen, and all indications are that 2009 won't be any better," said Jonathan Gold, National Retail Federation vice president. "Unfortunately, cargo volume at the ports reflects retailers' anticipated sales, and (we) expect that sales will get worse before they get better. Retailers are only going to import what they can sell."

Port Tracker follows shipping volume and congestion -- which is low at all ports due to less activity -- at 11 U.S. ports and two in Canada. The biggest ports for retail volume are the side-by-side facilities at Los Angeles and Long Beach.

U.S. diesel fuel consumption is tied closely to retail shipping traffic as trucks that carry retail and other goods from containers at ports account for nearly all diesel fuel use. Diesel fuel is about two-thirds of national distillate fuel demand.

Import cargoes dominate shipping traffic at North American ports.

The ports of Los Angeles and Long Beach are the two largest in North America and together handle more than 40 percent of U.S. imported goods. Most of the imports from China and other Asian countries go through one of these two ports.

A combined forecast for Los Angeles/Long Beach shows February 2009 imports will be down 18.1 percent from February 2008.

The following list shows forecast February 2009 traffic compared with actual February 2008 figures. Only the relatively small port at Montreal showed a year-on-year increase.

Ports are listed in rank of volume of imported container goods forecast to be handled. The ports in northern New Jersey and New York City are combined and so are the ports of Los Angeles and Long Beach.

Los Angeles/Long Beach -- down 18.1 percent

New York/New Jersey -- down 6.8 percent

Vancouver -- down 15.6 percent

Savannah, Georgia -- down 18.4 percent

Oakland, California -- down 27.3 percent

Hampton Roads, Virginia -- down 25 percent

Tacoma, Washington -- down 29.6 percent

Montreal -- up 2.3 percent

Seattle -- down 39.1 percent

Charleston, South Carolina -- down 29.5 percent

Houston -- down 13 percent

RAILROADS

Railroads in North America are also carrying less goods, according to the Association of American Railroads, and also because of the recession and much lower consumer demand for retail goods.

Through the second week of 2009, 12-month rail traffic is down 14.3 percent on North American tracks compared to the previous 12 months.

And overall rail carloads in the United States are down 17.4 percent, the industry group showed. (Reporting by Bernie Woodall; editing by Jeffrey Benkoe and Gunna Dickson)