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As a tired global economy increasingly looks to China for economic drive, trouble might be gathering on the horizon. At least if the container traffic going through the world's fourth largest shipping, the southern Chinese city of Shenzhen. Growth in the through flow of containers has only amounted to 7.2% in the last six months, to a level of 10.2 million standard 20-foot containers (TEU). That's only 50% of the growth achieved by the same time last year.
Analysts explain the failing growth in traffic in and especially out of Shenzhen as a direct result of failing growth in all of southern China, traditionally an economic motor for the rest of the country. The body slammed U.S. economy has meant a decline in exports, especially from the Yantian terminal, which also houses APM Terminals' Shenzhen operation. The first half of 2008 saw a 5% fall in the amount of containers passing through Yantian.
Speculators within the shipping industry are increasingly worried that they are witnessing the first indications of an actual export crisis which could spread to the rest of China, and local media report rumours of a government reintroduction of the tax rebate used to spur on exports in the 1990s.
Full story in Danish
News category: China
Published on this site: Jul. 18, 2008
Source:borsen.dk
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