[251110.EN.SEA] Likes US Recovery, But CMA CGM Sees Poor Facilities, Truck Shortage Ahead

FRENCH shipping giant, CMA CGM expressed confidence in the strengthening of the US recovery and plans to enlarge its American market share, but also fears a coming lack of trucks and high terminal handling charges will undermine progress.
In an interview with London's International Freighting Weekly, an unidentified company executive said: "Rising stevedoring costs in the US are not compensated by any terminal handling charge, like in the rest of the world."


The executive also said the Asia-North America market would grow by about 14 per cent this year, following contractions of seven per cent in 2008 and 13 per cent in 2009.
But the transpacific demand recovery, he said, showed the weaknesses in US supply chains. "The 2010 transpacific market will most probably end up at 13.2 million TEU on the eastbound leg and about 7.3 million TEU westbound," said an unidentified company executive.
The problem, he said, was worsened by the "obsolescence of US infrastructure, such as access to ports - draughts and so on - which remain an obstacle to the introduction of bigger tonnage in a number of ports".


He also said there was a potential shortage of trucks, while the trade imbalance ramped-up costs because of heavy empty container repositioning expenses from inland points, said the report.


"Despite this, we are confident in the US economy for the years to come, and CMA CGM plans to grow its share in the US market - especially from Asia," he said.


Source : HKSG, 25.11.10.