News

       NEW DELHI, FEB 25: Shipcontainer volumes from Asia to Europe grew by nearly 10 pc year-on-year in December, staging the biggest monthly increase in 2009 and indicating a recovery in seaborne trade, data showed.

       The global downturn has hit the container sector hard especially on key routes from Asia to consumers in the West carrying finished goods from electronics to toys. Data from the Brussels head quartered European Liner Affairs Association (ELAA) industry group, showed westbound volumes to Europe from Asia rose 9.47 pc in December 2009 to 1.009 million TEUs in December 2008. Container trade is measured in TEUs.

    December was the second month-on-month rise in 2009 after November, which posted a 2.52 pc rise.

   “Westbound December 2009 recorded the highest monthly figure for 2009, breaking the million box mark for the first time in 2009, ” the ELAA said in a statement. The ELAA said it should be noted that the December figure was being compared with December 2008, “a time the shipping industry was dipping deep into recession.”

    “Having said that, there is little doubt that the figures show signs of a strong recovery,” it added.

     The last time container volume on that route rose above 1 million TEUs was in October 2008, the ELAA said “December shows that the trade is coming back,” Rod Riseborough of the ELAA said.

    Container volume for the fourth quarter was down 0.05 pcat 3.029 million TEUs versus 3.031 million TEUs in the same period TEUs in the same period in 2008. Total year-on-Year volumes on the west bound Asia route to Europe in 2009 were down 14.77 pc at 11.501 million TEUs versus 13.494 million TEUs in 2008. Westbound trade to Europe from Asia is primarily driven by consumer goods bu also include manufactured items such as car parts. items such as car parts. Exporting countries include china, south Korea and Japan and exclude India and Australasia. Separately, the ELAA said eastbound trade from Europe to Asia jumped 46.97 pc year on year in December to 543,286 TEUs –the highest monthly volume in 2009 and 2008. Volume rose 30.17 pc in the fourth quarter versus a year ago and was up 4.5 pc for the whole of 2009 versus 2008.

      Trade is driven by paper and plastics exports from Europe . “The big growth is east bound and it is very substantial,” Riseborough said, There was increased optimism among operators in the liner sector , but added there was still significant overcapacity which would continue to “put pressure on charter rates.”"” The idle fleet still remains high at 10.4 pc of the total cellular fleet with a significant number of fresh diliveries expected in 2010 that could add to the overall capacity surplus,” it said in a report.