The China Import Market - The Impact of the Global Recession
The global slowdown has affected the international shipping trade, China, as the scale of Chinese imports in the contracts. As the global demand for Chinese imports fall, especially in the very important markets in the United States and Europe, China container volume decreased in the double-digit rates. As a result of the changing international freight market, expansion plans have been shelved in the freight industry to review the operations and investment planning.
For example, the pre-existing plans to develop the port, the Chinese port of Ningbo, Zhousan delayed. Already intended to build nine new container port as part of efforts to compete with Shanghai. Central to the expansion of freight services, plan was to develop the Jintang Dapokou Container Terminal, a 1.8km quay and five container berths, which re-freight sector.
However, these plans are now on the ice, as the Chinese export-dependent economy of the disc of slowing global demand, the impact of Chinese imports. The main ports in China, the world’s third largest economy, and saw a significant decrease in the volume of international freight transport in Shanghai down 15% year on year in the first quarter of 2009. Prior to this, the sharp decline for six consecutive months as the economic slump takes toll. Guangzhou Port has suffered the greatest decline, and nearly 25% year on year decline in the first quarter of 2009. This was followed by 21% in Shenzhen.
Against this pattern of decreasing quantity for shipping companies, however, it is worth noting that there was a booming demand in the domestic trade in China, especially in the South China cargo freight to the north. For example, transportation, Dalian, north to the 50% increase, year after year, and other ports in northern China indicates a digit growth, reflecting strong domestic demand. However, this is still only a small proportion of the total freight market, and does not begin to compensate for the global demand for Chinese imports.
Dr. Fu Yuning chairman of China Merchants Holdings International, an investment in almost all Chinese ports and terminal management, of which approximately 34% of Chinese container traffic, said that 2009 will turn out that ‘the most difficult years in a generation’ of the shipping companies and transport services sector in China. The decline of trade and transportation, China port operators manage the operational difficulties caused by the problem of empty containers piling up, and this has a negative impact on the effectiveness of the operation.
It should be borne in mind, however, that despite the downturn in China still sees economic growth of around 8% this year, which is still a very rosy picture, and which bodes well for the future, as if the global economy is resuming normal activities China will be obliged to continue increasing. Dr. Fu expects the worst of the slump will be over by 2010, while Chinese imports to the U.S. market is starting to build a consequence, the U.S. economy recovery.
Not all investment plans, so it was delayed because many of the freight transport industry is still firmly in the eyes of future opportunities. For example, in early 2009 has seen the construction work, the first container terminal in Huizhou. Eastern part of Guangdong, about 75 kilometers from Shenzhen, the new container terminal will be a total berth length of 800 m and a 60 yard field hectares.It will help Huizhou is a feeder and a container port terminal in the treatment of massive and non-containerized cargo is one of the leading container ports in South China at the forefront of the Chinese freight forwarders.
Thus, despite the fact that currently the market for Chinese imports into the darkness and the current difficulties facing many of the shipping company and shipping company in the short term is always the underlying sense of optimism about the medium and long term forecasting, back in demand for Chinese imports.