Carriers expected to grow 8-9pc in 2011, but rough weather ahead

ASIA to Europe cargo volumes are expected to grow between eight and nine per cent this year, compared to 2010, but growth in the third quarter could stall to three per cent year on year, according to UK-based BoxTradeIntelligence.


Analysts warn that such a slowdown in growth in the upcoming peak season may present "container lines with a need for very active capacity management to maintain stability in both the peak and slack seasons."


Slow steaming has absorbed all the ships that it can, they said, and with over 40 large capacity ships scheduled for delivery in 2011, or the equivalent of four new services on the Asia-Europe route, it could be a challenging period to utilise capacity.


"With impressive growth into Russia, one could wonder why direct deep-sea Baltic services are not more commonplace in 2011. It will reduce costs of transhipment, improve products and absorb more of the midsized displaced ships, and potentially ease port congestion issues by requiring fewer feeder ship calls."


As for the transpacific trade between Asia and North America, the analysts believe it will only rise by one per cent this year compared to the previous year, reported London's Containerisation International. The report also said surplus vessel capacity was to blame for profit shrinkage in the fourth quarter of 2010, with the yield per TEU dropping from US$324 to $146 on the Asia to Europe trades, while yields on the Asia to North America trade routes fell to $243 from $489.
(Source:http://www.schednet.com)