Global box volumes expected to stay flat in second half

THE volume of containers handled by China's ports, excluding Hong Kong, declined by 11.2 per cent in the first five months of the year to a total of 45.8 million TEU, compared to the same period a year earlier. This comes as leading ports and carriers operating in Asia suffered double-digit declines.

In May, China's ports handled a total of 10.2 million TEU, a decrease of 4.3 per cent year on year.



Within this total, China's top 10 ports handled a total of 8.21 million TEU in May, down seven per cent year on year. From January-May, China's top 10 ports handled a total of 37.4 million TEU, a decline of 11.1 per cent against the same period a year earlier, according to figures from Paris-based AXS-Alphaliner.



China's number one port, Shanghai, handled 2.08 million TEU in May, a decrease of 11.5 per cent year on year, second place Shenzhen handled 1.47 million TEU in May, down 17.7 per cent, Qingdao in third place handled 0.86 million TEU, up 3.1 per cent, and fourth place Guangzhou handled 0.97 million TEU, down seven per cent against the same month a year earlier.



AXS Alphaliner said liftings in May registered the lowest month-on-month decline this year, with the top 10 container ports in China experiencing a seven per cent drop for the month compared to the same period last year. This is lower than the 20 per cent drop reported for Singapore and 12 per cent drop in Hong Kong, it said.



By comparison, the Port of Singapore handled 2.1 million TEU in May, a decrease of 20.3 per cent year on year, and from January-May 10.20 million TEU, down 18.4 per cent. Hong Kong handled 1.79 million TEU in May, down 12.1 per cent, and 6.23 million TEU in the first five months of the year, down 19.0 per cent. Kaohsiung handled 720,000 TEU in May, down 16 per cent, and 3.29 million TEU in the first five months of the year, down 19.6 per cent compared to the same period last year.



"These latest lifting figures affirms recently amended forecasts that global container volume numbers will fall for the first time in its history, as there is little chance of a recovery in the second half that will reverse the decline seen so far. The sustained decline in container trade volumes is unprecedented and until March this year, some industry analysts were still predicting that container cargo volumes could see some marginal growth this year," said Alphaliner.

It went on to say, "The summer peak season may offer some relief for the ports, as volumes have started to pick up on a number of trades. However the seasonal pick up may not be enough to fill the slack, and liner operations remain mired in losses which may prompt some operators to pull out of unprofitable services or exit the industry altogether."

The weak market outlook comes as revenue from the world's 11 top container shipping lines fell by 35 per cent in the first quarter of 2009 compared with the same period in 2008, according to Alphaliner.

The 11 carriers under review account for about 45 per cent of global deployed capacity. Their total revenue fell from US$22.4 billion in the first three months of 2008 to $14.4 billion this year. The shipping lines are: Maersk and subsidiary Safmarine, Hapag-Lloyd, APL, MOL, NYK Line, Hanjin Shipping, OOCL, "K" Line, China Shipping, Cosco Container Lines and ZIM.

(Source: News and Data Online)