[EN-SEA] "Da Chan Bay" Volume Surge But US And Europe Unemployment A Dark Cloud in 2010

NEW services and improving volumes at west Shenzhen's Da Chan Bay Phase One container terminal have created a fresh sense of optimism at the port after an abysmal 2009.

First quarter volumes reached in excess of 160,000 TEU against a full year throughput of just 236,000 TEU in 2009, the terminal's chief executive officer, Andrew Milliken, told The Container Shipping Manager in a recent interview.

"We are getting more attention. We've got more services now from ZIM, we've got a new Hapag [Lloyd] service starting up, and we are expecting some additional services from Maersk later in the year, so I think we are on track for a good year," Mr Milliken said.

But while growth in the first half seems to be returning, the CEO did add that the full year's results would depend entirely on how the second half of the year shapes up, and at this stage it's anybody's guess.

Analysts and economists from groups such as the World Trade Organisation, Clarkson and a host of investment banks are forecasting shipping demand in 2010 to grow somewhere between 8.8 and 9.5 per cent. If this comes to pass, then ports like Da Chan Bay can look forward to a healthy year of business.

However, one of the major concerns that port operators, and the industry as a whole, is wary of this year is the ongoing unemployment woes facing China's two largest export markets—Europe and the United States.

While US unemployment has fallen slightly in the past month to 9.7 per cent, that figure is still extremely high. In Europe the situation appears to be even worse with member nations of the European Union averaging a 9.5 per cent unemployment rate.

The so-called PIGS (Portugal, Italy, Greece and Spain) are currently suffering the most in this respect. Spanish unemployment is now hovering at around 19 per cent, while Portugal and Italy have recorded rates of 10.9 and nine per cent, respectively.

Greece is forecast to rise past 12 per cent this year from the current 11.3 per cent rate recorded in January, National Bank of Greece economist, Nikos Magginas, was recently quoted by Reuters as saying.

Source : HKSG.