The Association of International Shipping Lines expects no growth in volume of containerized cargo this year because of the effect of the weakening US economy on Philippine exports, association president Octavio Katigbak said. ''The movements in the US economy will really affect everybody but the magnitude of the effect cannot be determined just yet,'' said Katigbak, who is president of Japanese-owned shipping company K-Line Philippines.
However, he noted that the strengthening of the peso would encourage imports and cushion the effects of the weakening dollar.
Nonetheless, shipping lines should look for other markets other than the US to cope with the situation, Katigbak said.
Last year, the shipping association was bullish on the container industry, primarily because the dollar was not as weak and the local political climate was stable. Katigbak predicted at least a 10-percent growth, or an additional 160,000 TEUs, in the country’s cargo throughput for 2007.
The actual volume was 1.6 million TEUs, about the same as in 2006. The association blamed the slowdown in the US economy.
The Philippine Ports Authority expects volume through the country’s major gateways may grow by five percent at the most.
However, he noted that the strengthening of the peso would encourage imports and cushion the effects of the weakening dollar.
Nonetheless, shipping lines should look for other markets other than the US to cope with the situation, Katigbak said.
Last year, the shipping association was bullish on the container industry, primarily because the dollar was not as weak and the local political climate was stable. Katigbak predicted at least a 10-percent growth, or an additional 160,000 TEUs, in the country’s cargo throughput for 2007.
The actual volume was 1.6 million TEUs, about the same as in 2006. The association blamed the slowdown in the US economy.
The Philippine Ports Authority expects volume through the country’s major gateways may grow by five percent at the most.