China's container handling volume through its ports and harbours posted a year-on-year decline in February, expanding the drop in January as the financial crisis continues to hurt the country's exports, reported Xinhua.
The volume of containers handled by ports nationwide totalled 6.97 million TEU in February, down 17 per cent compared with the same month of 2008. The figure was also down 22.5 per cent from January, which saw 8.99 million TEU, down 13.3 per cent year on year and 12 per cent from December of 2008.
A report released by China International Capital Corporation showed that recovery was not yet in sight as overseas demand would shrink further. It said the decline in February widened in spite of three more working days compared with the same month of 2008.
China's export volume decreased 17.5 per cent year on year to US$90.45 billion in January, according to China's General Administration of Customs.
Export data for February will be released next week. However, the 21st Century Business Herald quoted a trade official as saying exports decline would deepen to more than 20 per cent from the same period of 2008.
The total volume of coal was reduced by 15 million tonnes in February, or 15.5 per cent from a year-earlier level. And the metal volume slid eight per cent year on year.
The report forecast a possible pick-up of the metal volume as the CNY4 trillion (US$585 billion) stimulus package and measures to revive steel, auto and shipbuilding industries would drive up the demand for metal.
Bulk, not boxes, to lead upturn, but too many bulkers on order: Euroseas
AS global GDP grows goes, so grows container shipping, says Euroseas chairman and CEO Aristides Pittas.
"Both dry bulk and containerised trade growth closely follow GDP growth, so we do not expect to witness a recovery in either sector unless we see a significant improvement in the world GDP," he told CNN Money in a recent interview.
"However, dry bulk is tied mainly to infrastructure development and usually leads developments in consumer confidence which is important for containerised trade to pick up. Therefore one would expect dry bulk to lead the recovery by a few months, especially since the stimulus packages undertaken by governments will require significant quantities of raw materials carried by bulkers," he said.
"Historically both sectors move loosely in parallel, but peaks and troughs are not of the same magnitude as individual fundamentals have different bearings," he said.
"For example, during the latest shipping boom, container charter rates increased much less than the drybulk rates, mainly due to the fact that drybulk owners had not anticipated the demand growth and had not placed enough newbuilding orders, whereas container owners were more proactive and had placed enough orders to cater for the increasing demand," he said.
Mr Pittas, whose company is a major drybulk player, but a lesser one in containers, said the two dry sectors still had common drivers, but there was a "huge" outstanding drybulk orderbook, so even if there was an increased demand, it would be some time before a drybulk recovery. "We will have to see delays, cancellations and scrapping playing their role in balancing the world fleet before rates improve substantially," he said.
Asked about layups, he said: "Currently about 8.5 per cent of the world container fleet is laid up according to Alphaliner. We do expect this number to rise as the recession in the US and euro zone deepens. The container vessels laid up are the smaller ones which are not under long-term employment, but we are starting to see bigger ships becoming idle as they come out of their charters. Laying up is a prudent move when charter rates fall significantly below operating costs and the vessels are too young to scrap."
Looking on the bright side, Mr Pittas said: "Bad markets do not last forever and ships will again be making money. We believe that the smaller containerships like the ones owned by Euroseas, between 1,000 - 2,500 TEU, will be the first to come out of lay-up as they are neither being overbuilt nor require huge volumes of cargo to fill them up."
The volume of containers handled by ports nationwide totalled 6.97 million TEU in February, down 17 per cent compared with the same month of 2008. The figure was also down 22.5 per cent from January, which saw 8.99 million TEU, down 13.3 per cent year on year and 12 per cent from December of 2008.
A report released by China International Capital Corporation showed that recovery was not yet in sight as overseas demand would shrink further. It said the decline in February widened in spite of three more working days compared with the same month of 2008.
China's export volume decreased 17.5 per cent year on year to US$90.45 billion in January, according to China's General Administration of Customs.
Export data for February will be released next week. However, the 21st Century Business Herald quoted a trade official as saying exports decline would deepen to more than 20 per cent from the same period of 2008.
The total volume of coal was reduced by 15 million tonnes in February, or 15.5 per cent from a year-earlier level. And the metal volume slid eight per cent year on year.
The report forecast a possible pick-up of the metal volume as the CNY4 trillion (US$585 billion) stimulus package and measures to revive steel, auto and shipbuilding industries would drive up the demand for metal.
Bulk, not boxes, to lead upturn, but too many bulkers on order: Euroseas
AS global GDP grows goes, so grows container shipping, says Euroseas chairman and CEO Aristides Pittas.
"Both dry bulk and containerised trade growth closely follow GDP growth, so we do not expect to witness a recovery in either sector unless we see a significant improvement in the world GDP," he told CNN Money in a recent interview.
"However, dry bulk is tied mainly to infrastructure development and usually leads developments in consumer confidence which is important for containerised trade to pick up. Therefore one would expect dry bulk to lead the recovery by a few months, especially since the stimulus packages undertaken by governments will require significant quantities of raw materials carried by bulkers," he said.
"Historically both sectors move loosely in parallel, but peaks and troughs are not of the same magnitude as individual fundamentals have different bearings," he said.
"For example, during the latest shipping boom, container charter rates increased much less than the drybulk rates, mainly due to the fact that drybulk owners had not anticipated the demand growth and had not placed enough newbuilding orders, whereas container owners were more proactive and had placed enough orders to cater for the increasing demand," he said.
Mr Pittas, whose company is a major drybulk player, but a lesser one in containers, said the two dry sectors still had common drivers, but there was a "huge" outstanding drybulk orderbook, so even if there was an increased demand, it would be some time before a drybulk recovery. "We will have to see delays, cancellations and scrapping playing their role in balancing the world fleet before rates improve substantially," he said.
Asked about layups, he said: "Currently about 8.5 per cent of the world container fleet is laid up according to Alphaliner. We do expect this number to rise as the recession in the US and euro zone deepens. The container vessels laid up are the smaller ones which are not under long-term employment, but we are starting to see bigger ships becoming idle as they come out of their charters. Laying up is a prudent move when charter rates fall significantly below operating costs and the vessels are too young to scrap."
Looking on the bright side, Mr Pittas said: "Bad markets do not last forever and ships will again be making money. We believe that the smaller containerships like the ones owned by Euroseas, between 1,000 - 2,500 TEU, will be the first to come out of lay-up as they are neither being overbuilt nor require huge volumes of cargo to fill them up."