A rebounding U.S. economy will likely lead to a tight supply of vessel space and equipment during the peak third quarter shipping season, according to Transpacific Stabilization Agreement (TSA), which represents the major container shipping lines serving the Asian-U.S. trade.
The group said its forecast of 7-8% growth in container traffic for the Asian-U.S. trade indicates that additional ships now being delivered will be needed and well-utilized in the upcoming third-quarter, when Asian-U.S. shipping typically peaks ahead of the holiday shopping season.
“After demand growth of more than 15% in 2010, we expect further growth in the 7-8% range for 2011,” said Y.M. Kim, president and CEO of Hanjin Shipping Co. “This continued cargo growth, from a much higher base, is in our view a very positive sign of recovery.”
Kim noted that cargo activity was somewhat quieter than expected in the run-up to factory closures for the Lunar New Year holiday that began Feb. 3. But he added that “advance bookings and market data suggest a return to robust trade flows by late spring and early summer, with a possibility that vessel space and equipment will be tight at times leading into the peak season.”
TSA noted that delays on new vessel deliveries, heavy demand for ships on Intra-Asia routes and other factors would slow volume growth.
