The Chinese container freight business, partly buoyed by Christmas orders, is enjoying its best numbers since the start of the global financial crisis, China Business Weekly reported.
But negative factors are helping keep optimism at bay among the country's ports and shipping companies.
Through September 11, the Chinese Container Freight Index rose to 941.9 points after continuous increases during the previous two weeks – a 23.39 percent hike compared with the lowest point in June. Early this month, the index rose 2.1 percent week-on-week.
Ren Minqiang, head of Qingdao Qianwan Container Terminal, said he estimated a "shining" September, based on freight going up nearly nine percent in the first two weeks of the month, compared with the same period last year.
Ren said autumn is traditionally a strong time for Chinese shipping because of Christmas holiday business.
In the first quarter of 2009, when business was at its worst, Ren said he suggested his staff go home to enjoy their annual leave.
The situation is different now, he said.
According to data released by the Shanghai Shipping Exchange, the average shipping space utilisation ratio has reached 95 percent since July – up from 60 percent to 70 percent in February.
"Space is full again, as if we are back to prosperous times," said Wu Wei, general manager of Sinotrans Fujian.
Wei Jiafu, chairman of China Ocean Shipping (Group), China's largest global shipping group, said European and US markets are going to demand more Chinese exports as the financial situation improves in those countries.
Shipping companies and ports have already lifted prices for their services.
Luo Xiong, an analyst with Merchants Securities, said freight prices have passed the break-even point at shipping companies. By comparison, during the worst of the slump, some companies lost US$500 to $600 per delivered container.
Still, there are concerns the boom in business won't last long. Demand and prices will decline again after this fall's peak season, analysts said.
"For the entire container industry, it is still quite thorny to realise a profit within one to two years," said Wu Yunying, an analyst with Changjiang Securities.
Cargonews Asia
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