Bright fourth quarter forecast for local shipping companies
Organization: Department of International Cooperation Publish Date: 2016-11-14 17:25
Source: China Post (11/14/2016)
Better-than-expected forecasts for the air transport and shipping markets have spurred optimism among freight firms.
Shipping lines indicated that prices increased in October 2016, with routes to the Americas and Europe recovering strongly. Evergreen Marine Corp. and Yang Ming Marine Transport Corporation have been the two major domestic beneficiaries of the market revival. "The worst (for the shipping industry) has passed," Yang Ming CEO Bronson Hsieh said.
According to Dimerco Express Group, a leading logistics company primarily serving the mainland China and ASEAN markets, air freight has always performed well in the fourth quarter, but closer observation is required to determine how the market will fluctuate in the long run, as it had been forecast OK. 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. China Airlines and EVA Air look set to be first in line to profit from this trend.
Another reason that air transport prices may have been boosted is a recent administrative order by mainland China's Civil Aviation Administration that reduced the number of cargo flights between Taiwan and major cities on mainland China's east coast.
Several shipping lines said there is normally a lull in the market following mainland China's 11-day national holiday in early November. However, the cargo container loading rate recovered swiftly this year, hitting 80% this past week, compared with 60% for the same period last year.