Container lines of the Transpacific Stabilization Agreement (TSA) expect cargo demand to continue to improve in 2011 as the U.S. economy recovers, roughly in line with new vessel capacity entering the Asia-U.S. trade lane over that period, Manila Bulletin reports.
With a traditional third quarter peak season now considered likely, TSA says that additional ships now being delivered will ultimately be needed and well-utilized.
“After demand growth of more than 15% in 2010, we expect further growth in the 7-8% range for 2011,” said Y.M. Kim, President and CEO of Hanjin Shipping Co.
“This continued cargo growth, from a much higher base, is in our view a very positive sign of recovery,” said Kim noting that cargo activity is somewhat quieter than expected in the run-up to Lunar New Year holiday factory closures in Asia.
But he added that ‘advance bookings and market data suggest a return to robust trade flows by late spring and early summer, with a possibility that vessel space and equipment will be tight at times leading into the peak season.”
TSA noted 2011 industry forecasts of 8.8% growth in Transpacific capacity and added that delays on new vessel deliveries, heavy demand for ships on Intra-Asia routes and other factors will temper the impact of that growth as well.
Reinvesting in carrier service networks to meet demand growth and serve customers’ specialized needs make its recommended program of adjustments to rates and charges all more critical.
“All of us had to hit the ground running in early 2010 climbing out of the deepest global recession in decades, redeploying assets and restoring services,” Mr. Kim pointed out.
“Carriers rushed to fill ships, did not always get their pricing right, and at times alienated valued customers as they struggled to recover. Our focus in 2011 must now be to rebuild relationships, based on reliable services at fair, stable prices. Our aim is to stabilize rates and avoid the dramatic peaks and valleys that have characterized the trade for the last several years.”
TSA’s internal reporting indicates that Q4 2010 carrier vessel utilization was higher than that portrayed in recent analyst or press reports, and were typical for the onset of the traditional post-holiday winter season.
Average West Coast utilization among TSA’s 15 members, for example, ranged from a high of 96% in late October to a low of 79% in early December. East Coast utilization ranged from 94% in early October to 84% at the end of November. Utilization in early January 2011 was 88% to the West Coast and 95% to the East Coast.
With a traditional third quarter peak season now considered likely, TSA says that additional ships now being delivered will ultimately be needed and well-utilized.
“After demand growth of more than 15% in 2010, we expect further growth in the 7-8% range for 2011,” said Y.M. Kim, President and CEO of Hanjin Shipping Co.
“This continued cargo growth, from a much higher base, is in our view a very positive sign of recovery,” said Kim noting that cargo activity is somewhat quieter than expected in the run-up to Lunar New Year holiday factory closures in Asia.
But he added that ‘advance bookings and market data suggest a return to robust trade flows by late spring and early summer, with a possibility that vessel space and equipment will be tight at times leading into the peak season.”
TSA noted 2011 industry forecasts of 8.8% growth in Transpacific capacity and added that delays on new vessel deliveries, heavy demand for ships on Intra-Asia routes and other factors will temper the impact of that growth as well.
Reinvesting in carrier service networks to meet demand growth and serve customers’ specialized needs make its recommended program of adjustments to rates and charges all more critical.
“All of us had to hit the ground running in early 2010 climbing out of the deepest global recession in decades, redeploying assets and restoring services,” Mr. Kim pointed out.
“Carriers rushed to fill ships, did not always get their pricing right, and at times alienated valued customers as they struggled to recover. Our focus in 2011 must now be to rebuild relationships, based on reliable services at fair, stable prices. Our aim is to stabilize rates and avoid the dramatic peaks and valleys that have characterized the trade for the last several years.”
TSA’s internal reporting indicates that Q4 2010 carrier vessel utilization was higher than that portrayed in recent analyst or press reports, and were typical for the onset of the traditional post-holiday winter season.
Average West Coast utilization among TSA’s 15 members, for example, ranged from a high of 96% in late October to a low of 79% in early December. East Coast utilization ranged from 94% in early October to 84% at the end of November. Utilization in early January 2011 was 88% to the West Coast and 95% to the East Coast.