[050811.EN.SEA] China Academy of Sciences Predicts Slowdown In World Container Cargo Growth

CHINESE Academy of Sciences' (CAS) Centre For Forecasting Science of recently estimated that container cargo will continue to grow this year, but at a slower rate than in 2010.

The report also said that despite substantial growth in world economy, the shadow of financial crisis still lingers. Europe's debt crisis and natural disasters have brought in economic uncertainty to container shipping, in which China is expected to remain the world's biggest player.

CAS's Centre For Forecasting Science director Wang Shouyang said the slow recovery of US economy and lack of reviving vitality in Europe will hinder container shipping market growth. Overcapacity will also have negative impact on freight rates and result in harsher competition.

The centre also predicted that Shanghai will continue to be No 1 in the world, and that the number of Chinese ports on the world's top 20 ports list will increase from nine to 10. The institution also expects to see faster growth in Bohai Rim region and Yangtze River Delta than in Pearl River Delta.

According to Xinhua's report, the Centre For Forecasting Science is one of the world's earliest institutions in forecasting container throughput. It had a precision rate of 99.32 per cent in last year's prediction, said Xinhua.

Source : HKSG, 26.07.11.