Freight forwarding uplift, Asian trade growth expected

AP Moller Maersk's Group's logistics arm Damco and DHL Forwarding experienced a rebound in volumes second quarter with capacity shortage in particular from China and Hong Kong likely to continue with a shift from sea to air shipping possible.

Damco CEO Rolf Habben-Jansen is expecting less laid up capacity year beginning compared to the start of 2009, but that the market will continue to be "fairly volatile".

Slow steaming and other initiatives will keep a better balance on supply and demand. "Carriers had a terrible year in 2009, so it is understandable they will continue to manage capacity," he added.

Mr Habben-Jansen said in an American Shipper report that measures such as staff cuts of 10 to 11 per cent from the beginning of the year helped it to hit profit but is predicting a tricky year in 2010 with air and ocean carriers increasing rates.

He hopes that revamping its less-than-containerload product on other trade lanes since its launch of Damco's Americas Bridge LCL service between Miami and 33 locations in Latin America. It aims to grow 300,000 - 400,000 cubic metres to at least 1 million cubic metres annually, the equivalent of about 10,000 - 13,000 TEU. Its forwarding business handles about 550,000 TEU.

DHL Global Forwarding South Asia Pacific and Angola CEO Amadou Diallo said its rebound in Asia started in June with Asian customers, of which it has 400,000 doubling its air cargo year on year to 2.2 million tons.

Singapore-based Mr Daillo said that the market had rebounded so strongly that "if you go today to find Hong Kong airport you see a lot of cargo that is needed to be shipped because of lack of capacity" which extends to mainland China with ocean freight services struggling in intra-Asia trade lines.

For example "it is a big struggle to find enough capacity to provide the services from China to India," he added.

Mr Daillo said Penang market is growing including good sustained activity in Indonesia, investment increases in Vietnam and Pakistan increasing its trade along with Sri Lanka.

Trade sectors on the up include technology, automotive, fashion and apparel. He said "It's multifold, not just one particular sector moving up because of Christmas."

Source: www.schednet.com