The head of Qingdao Qianwan Container Terminal predicts a “shining” September based on freight going up nearly 9% in the first two weeks of the month compared with the same period last year
China Business Weekly reports the Chinese container freight business, partly buoyed by Christmas orders, is enjoying its best numbers since the start of the global financial crisis. But some negative factors can be seen among the country’s ports and shipping companies and some analysts are forecasting a long haul back to serious profitability.
However, in contrast, Ren Minqiang, head of Qingdao Qianwan Container Terminal, said he estimated a "shining" September, based on freight going up nearly 9% in the first two weeks of the month, compared with the same period last year. Ren said autumn is traditionally a strong time for Chinese shipping because of Christmas holiday business.
According to data released by the Shanghai Shipping Exchange, the average shipping space utilization ratio has reached 95% since July – up from 60 to 70% in February.
Wu Wei, general manager of Sinotrans Fujian, said, "Space is full again, as if we are back to prosperous times."
Wei Jiafu, chairman of China Ocean Shipping (Group), China’s largest global shipping group, said European and US markets are going to demand more Chinese exports as the financial situation improves in those countries.
Shipping companies and ports have already lifted prices for their services.
CargoNews Asia quoted Luo Xiong, an analyst with Merchants Securities, who said freight prices have passed the break-even point at shipping companies. By comparison, during the worst of the slump, some companies lost US$500 to $600 per delivered container.