In International Shipping News 14/11/2016
Better-than-expected forecasts for the air transport and shipping markets have spurred optimism for freight firms.
Shipping lines indicated that prices increased in October, with routes to the Americas and Europe recovering strongly.
Evergreen Marine Corp. and Yang Ming Marine Transport Corporation were the two major domestic beneficiaries of the market revival, according to Bronson Hsieh, CEO of Yang Ming.
“The worst (for the shipping industry) has passed,” Hsieh said.
According to Dimerco Express Group, leading logistics specialists primarily serving the China and ASEAN markets, air freight has always performed well in the fourth quarter, but it was forecast to do even better this year.
China Airlines and EVA Air look set to be first in line to profit from this trend.
Closer Observations
However, Dimerco Express Group said how the market would fluctuate in the long run required closer observation.
The company explained that the recent rise in the air transport market may have been triggered by the bankruptcy of South Korea-based Hanjin Shipping, which forced freight customers to look elsewhere.
Prices may also have been boosted by a recent administrative order by mainland China’s Civil Aviation Administration that reduced the number of cargo flights between Taiwan and major cities on China’s east coast.
Several shipping lines said there was normally a lull in the market following China’s 11-day national holiday in early November.
However, the cargo container loading rate recovered swiftly this year, hitting 80 percent this past week, compared with 60 percent for the same period last year.
The bright fourth-quarter forecast is expected to benefit Dimerco Express Group and T3EX Global Holdings the most.
Source: The China Post
