Booming trade between Asia and the United States and Canada could spark a 7 to 8 per cent rise in containerised ocean shipments across the Pacific Ocean, leading transpacific shipping lines say.
The surge in container volumes, equivalent to about 1.6 million teu (20-foot equivalent units), will be the most apparent from late spring. It may lead to a shortage of shipping capacity and boxes similar to the situation seen early last year that caused cargo to be left in port and shipping lines to charge a premium for loading freight.
The growth in trade and container volumes will be fuelled by the continued recovery in the US economy, said the Transpacific Stabilisation Agreement, a lobby group of 15 big transpacific container shipping lines.
Members of the group, which carry about 95 per cent of the containerised cargo across the Pacific, include Orient Overseas Container Line and Cosco Container Lines.
Kim Young-min, the chairman of the TSA who is also president and chief executive of South Korea's Hanjin Shipping, said: 'After demand growth of more than 15 per cent in 2010, we expect further growth in the 7 to 8 per cent range for 2011.'
Kim said that while the volume of cargo shipments was more muted than expected before the Lunar New Year holiday, 'advance bookings and market data suggest a return to robust trade flows by late spring and early summer'.
He said this could lead to 'a possibility that vessel space and equipment will be tight at times leading into the peak season'.