| The global trade slowdown has affected international | | | | decline in demand for China imports. |
| freight forwarding from China as the scale of the | | | | Dr Fu Yuning, Chairman of China Merchants Holdings |
| China import market contracts. As world demand for | | | | International, which has investments in nearly all China |
| China imports falls away, especially in the very | | | | ports and whose terminals handle around 34% of all |
| important markets of the United States and Europe, | | | | China's container traffic, has said that 2009 will turn |
| container volumes in China have fallen at double digit | | | | out to be 'the most difficult year in a generation' for |
| rates. As a result of the changing international freight | | | | shipping companies and the freight services industry |
| market, expansion plans have been shelved as the | | | | in China. As well as the downturn in freight |
| freight transport industry reviews it operations and | | | | forwarding trade, China's port operators are having |
| investment planning. | | | | to deal with operational difficulties created by the |
| For example, plans previously in place for developing | | | | problem of empty containers piling up and this |
| the port at China's Ningbo-Zhousan port have been | | | | impacts negatively on operational efficiency. |
| put on hold. It had been intended to build nine new | | | | It should be kept in mind however that despite the |
| container terminals as part of the port's ambition to | | | | downturn, China is still seeing economic growth of |
| compete with Shanghai. Central to the freight | | | | around 8% this year, which is still a very rosy picture |
| services expansion plan was the development of the | | | | and one that bodes well for the future, as once the |
| Jintang Dapokou Container Terminal, with a 1.8km | | | | global economy resumes normal activity, China will be |
| quay and five container berths, which would redefine | | | | bound to continue to grow still further. Dr Fu |
| freight services in the area. | | | | anticipates that the worst of the slump will be over |
| However, these plans are now on ice as China's | | | | by 2010, so long as the US market for China imports |
| export dependent economy reels from the impact of | | | | begins to pick up as a result of a recovering US |
| the slowdown in global demand for China imports. | | | | economy. |
| The main ports in China, which is the world's third | | | | Not all investment plans are being postponed |
| largest economy, have all seen substantial declines, | | | | therefore, as many in the freight transport industry |
| with international freight volumes at Shanghai down | | | | still have their eye fixed firmly on future opportunity. |
| 15% year on year in the first quarter of 2009. This | | | | For example, 2009 has seen the start of building |
| followed six consecutive months of steep declines as | | | | works for Huizhou's first container terminal. Located in |
| the economic slump takes its toll. Guangzhou port | | | | eastern Guangdong, roughly 75 kilometres from |
| suffered the worst decline, with nearly 25% year on | | | | Shenzhen, this new container terminal will have a total |
| year decline in the first quarter of 2009. This was | | | | berth length of 800m and a yard area of 60 |
| followed by Shenzhen at 21%. | | | | hectares.It will help transform Huizhou from a |
| Against this pattern of declining volumes for shipping | | | | container feeder port and a terminal handling bulk and |
| companies, however, it is worth noting that there | | | | non-containerised cargo into one of South China's |
| has been a booming demand in domestic trade in | | | | leading container ports at the forefront of the China |
| China, especially with the freight transport of cargo | | | | freight forwarders industry. |
| from the south of China to the north. For example, | | | | So despite the current gloom in the China import |
| freight forwarding to Dalian in the north has increased | | | | market and the difficulties currently faced by many a |
| 50% year on year and other ports in the north of | | | | shipping company and freight company in the short |
| China are also showing single digit growth due to the | | | | term, there is still a mood of underlying optimism |
| strong domestic demand. However, this is still a small | | | | about the medium and long term prospects as the |
| proportion of the total freight forwarding market and | | | | demand for China import returns. |
| does not begin to compensate for the worldwide | | | | |