Singapore container volume expected to grow 6-8pc this year

SINGAPORE's container shipping volume is expected to grow six to eight per cent this year despite double-digit growth in the first quarter, reports Channel News Asia.

Transpacific and Asia-Europe volumes are expected to slow while intra-Asia trade remains stable, according to London shipping consultants Drewry Maritime.

While volumes have risen 40 per cent year on year in the first quarter of 2010, this notable rise is ascribed to the poor performance last year. Prospects ahead are darkened by Europe's debt crisis and high US unemployment, both of which will cut into consumer spending.

"If the contagion spreads to the bigger economies, there would be a sentimental reaction, like we saw in 2008's last quarter and 2009 - a slow down in credit," said Drewry's Asia chief Divay Goel.

Add to that, the steady stream of capacity in the market as owners and operators reactivate mothballed fleets, laid up in the downturn, thus pushing down rates once again as the year wears on.

Asia-Europe and transpacific contract rates have increased 25 per cent since January, while intra-Asia rates have only gone up 12 per cent, but should remain stable with fewer evident economic difficulties ahead.

Said Island Shipbrokers research chief Katharine Cheong-Koh: "We are seeing a more moderated recovery on the demand side and in terms of supply. We're seeing heavy pressures in terms of supply overhang."
(Source:www.schednet.com)