Market hits bottom, says Shanghai International Shipping Institute study
2012 04 11
- Details
THE latest report posted by Shanghai International Shipping Institute (SISI) asserts that China's shipping market has hit the bottom since the rate collapse last year, Xinhua reports.
According to the report, the China Shipping Prosperity Index (CSPI) in the first quarter of this year is 86.35 points, lower than the prosperity 100-midpoint border, falling 3.6 points compared to the last quarter, but rate of decline has been shrinking.
Though most carriers are still pessimistic, the China Shipping Confidence Index (CSFI) has gone up 9.58 points to 68.92 points compared to the last quarter.
Since the carriers' rate restoration schemes in March led by Maersk, shipping rate has gone up to and is remaining at the level from US$1,300 to $1,400, nearly doubled that of month ago. The report said the rate increases will continue for a while but will be affected by cargo volume in the long run.
SISI's survey shows that 52.6 per cent of the carriers consider that it will be a trend to ally with other carriers as a temporary solution to overcapacity.
Besides, Chinese carriers also will get support from the government. Ministry of Transport spokesman He Jianzhong said that the government is working on measures to boost the shipping industry, including encouraging shippers and carriers to share risk while at the same time, urging consolidation through mergers.
SISI also predicts that the CSPI index will see rapid growth in the second quarter which will bring shipping back towards profitability.
Source Shipping Gazette - Daily Shipping News
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