It is reported that International ocean shipment is traditionally busy in October and November, as large quantities of commodities rushed to the West for coming Christmas Day, but it is shrouded in depression this year.
In the past October, China's ports capacity fell dramatically following global financial crisis and slim demand. Water Transport Department, Ministry of Communication, issued that China's main ports have totally handled 470 million tonnes of merchandise in October, up 6% YoY, but falling 2.1% MoM to the lowest in this year.
Water Transport Department announced that domestic containers capacity at ports in October has increased 8.2% YoY to 10.65 million TEUs, but slipped 0.8% compared with the same period of last year, keeping growing below 10% in two consecutive months.
Tracking dipping containers quantities, containerized freight plunges as well. Take the case of Shanghai Europe line, the freight has dived to USD 200 per TEU from USD 1000 per TEU in the early year. As a result, many shipping carriers planed to abandon or stop new orders of making new vessels, cutting cost at the same time. Experts viewed Containers capacity would grow 21.75 million TEUs or 23% YoY 2009, which is expected to put great pressure on ports if the weak containers traffic volume continues.
Mr Chen Maoyuan President of Shanghai Port Group said that "valuation of port listed corporation has declined 20% to 30% from the same period of last year and some ports have a problem of excess capacity. As recession impact on ports business always lags behind the other industries, the current depression may extend into next year."
As per report Rotterdam Port, the largest port in the world, has been also attacked severely by the global financial tempest. It is said that the Q3 is the worst season to Netherlands in six years, 46% and 54% of forwarding business sliding respectively in home trade and foreign trade, which causes at least 100 transportation firms on the brink of closure and thousands employees to lose their jobs.
