Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Freight index is up for country's ports
Adjust font size:

The Chinese container freight business, partly buoyed by Christmas orders, is enjoying its best numbers since the start of the global financial crisis.

But negative factors are helping keep optimism at bay among the country's ports and shipping companies.

Through Sept 11, the Chinese Container Freight Index rose to 941.9 points after continuous increases during the previous two weeks - a 23.39 percent hike compared with the lowest point in June. Early this month, the index rose 2.1 percent week-on-week.

Ren Minqiang, head of Qingdao Qianwan Container Terminal Co Ltd, said he estimated a "shining" September, based on freight going up nearly 9 percent in the first two weeks of the month, compared with the same period last year.

Ren said autumn is traditionally a strong time for Chinese shipping because of Christmas holiday business.

In the first quarter of 2009, when business was at its worst, Ren said he suggested his staff go home to enjoy their annual leave.

The situation is different now, he said.

According to data released by the Shanghai Shipping Exchange, the average shipping space utilization ratio has reached 95 percent since July - up from 60 percent to 70 percent in February.

"Space is full again, as if we are back to prosperous times," said Wu Wei, general manager of Sinotrans Fujian Corp.

Wei Jiafu, chairman of China Ocean Shipping (Group) Co, China's largest global shipping group, said European and US markets are going to demand more Chinese exports as the financial situation improves in those countries.

Shipping companies and ports have already lifted prices for their services.

Luo Xiong, an analyst with Merchants Securities, said freight prices have passed the break-even point at shipping companies. By comparison, during the worst of the slump, some companies lost $500 to $600 per delivered container.

Still, there are concerns the boom in business won't last long. Demand and prices will decline again after this fall's peak season, analysts said.

"For the entire container industry, it is still quite thorny to realize a profit within one to two years," said Wu Yunying, an analyst with Changjiang Securities.

During the first half of this year, the container freight division of China Ocean Shipping (Group) Co reported a 3.4 billion yuan loss, versus a 2.2 billion yuan profit during the same period last year.

(China Daily September 28, 2009)

Tools: Save | Print | E-mail | Most Read Bookmark and Share
Pet Name
China Archives
Related >>
- Decline in cargo demand hits net at freight firm
- Airport owner seeks partners for freight hub
- Freight costs fuel COSCO earnings
June 7 Tokyo 2nd China-Japan High-Level Economic Dialogu

June 30 Shanghai 2009 Automotive Engine Technology Seminar

September 8-12 Xiamen China Int'l Fair for Investment and Trade
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?