China's International Freight Industry - Optimistic About the Future

Shipping companies and the international freight2010 export growth to 10% as China import comes
sector in China continue to encounter the effects ofback in demand in Europe and the United States.
the global economic gloom as they face the start ofThis optimistic forecast is reflected in the continuing
2010. Massive declines in demand for China importdevelopment activity in relation to China imports. For
goods from the Western economies in Europe andexample, a sixth container terminal is being built at
the United States have had a knock on effect rightWaigaqiao Port and is expected to become
across the freight forwarding industry in China.operational in 2010 with an annual capacity of over 2
China's Ministry of Transport has estimated thatM TEU and 730,000 vehicles.
container throughput at ports in China will haveThis will help consolidate the extremely strong freight
decreased by 7% in 2009. In the first 9 months oftransport infrastructure in China and bolster the
2009, China's ports handled just over 77 TEU, downcountry's position as trade resumes, following the
9% on the same period in the previous year. Therecovery of the world economy and the inevitable
impact has not been uniform, with some portscontinued growth of China imports as there is more
suffering worse than others. Year on year volumesdisposable income and credit available in Western
at Shanghai, China's largest container port, fell 15% ineconomies.
the first nine months of the year and the secondThe likely continued economic development of the
largest port, Shenzhen saw an even steeper declineEastern European countries are also likely to provide
at over 20%. This was because nearly half of thea further market for China imports as is improved
freight forwarding boxes handled at Shenzhen arerelations between China and Taiwan.
China import bound for Europe and this internationalOne of the optimistic pointers for future
freight business has been particularly badly hit by thedevelopment of the freight forwarding infrastructure
global economic slowdown. Meanwhile, some of thein China is the increasing amount of consolidation as
coastal ports such as Quindao and Dalian sufferedsmaller ports tie up with larger ports. For example,
smaller declines in container traffic and some, such asNingbo and Zhoushan ports have merged and this has
Ningbo, Yingkou and Tianjin saw positive growth.spurred Shanghai to take equity stakes in
However, entering the New Year for 2010, theChongquing, Wuhan and other ports on the upper
freight transport industry in China is optimistic aboutreaches of the Yangtse. Meanwhile, in Northern China.
the prospects for the future. Spokespeople forQingdao and Dalian are joining forces with
shipping companies and freight companies operating inneighbouring smaller ports. The aim of the
the China freight forwarding industry are predictingconsolidation is to tap the group's advantages.
growth in 2010. This point of view is backed up by aIn this way, the main players in the freight services
recent report on international freight trends byinfrastructure in China are laying the foundations for a
Deutsche Bank which says that throughput in Chinabright future and the various shipping companies and
should recover strongly during 2010.freight companies that use the ports will stand to
The securities firm has raised its forecast for China'sbenefit.