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According
to RCL's Mr Chu, the growth of the middle
class in Asia is affecting equipment demand.
"We
see higher-value, finished cargo being shipped
within Asia as the middle class continues
to grow - thereby there is more use of 40ft
high-cubed versus 20ft containers,"
he said.
Rapidly
escalating ship sizes and the trend towards
mega alliances, such as the M2 and Ocean
Three, is also placing pressure on intra-Asia
container supply chains.
Indeed,
the cascading of deepsea post-panamax vessels
onto intra-Asia networks is predicted to
continue as the introduction of ultra-large
containerships on the major east-west trade
lanes increases.
"Mega
alliances and vessels will create opportunities
for us to combine shipper-owned container
(SOC) and carrier-owned container (COC)
loadings on the same service, allowing us
to string up longer and more frequent port-to-port
services that meet the combined needs of
SOC and COC customers," said Mr Chu.
On
the impact of vessel upsizing and mega alliances
on Asia's port productivity, Mr Chu pointed
out some potential limitations.
"Draught,
terminal productivity and congestion issues
may limit upsizing and [the potential to]
enjoy lowest unit cost per TEU on a number
of intra-Asia corridors.
"Terminals
are becoming increasingly congested in Asia,
with securing a preferred berth an issue
at times. In some countries, there is also
limited investment in some facilities, with
politics and finances likely being issues,"
he said.
Speaking
at Leipzig conference, Mr Widdows said India
and Indonesia can reap the benefits from
the shifting of the trade patterns if they
have the infrastructure in place to cope
with growth.
But
while the two countries have enormous potential
and ambition, they still lack infrastructure,
he said.
Said
MCC Transport CEO Tim Wickmann: "Inadequate
port capacity is the single biggest challenge
to intra-Asia trade growth. We have many
ports in Asia close to maximum capacity
and not developing fast enough to cater
for this growth."
Mr
Wickmann estimated trade growth would create
three million extra moves for Asian terminals,
but the problem is whether they can handle
them.
"But
in my 25 years in shipping, 2014 was the
worst I've seen in terminal congestion in
Asia. Congestion in Manila and Hong Kong
was a huge problem for us," he told
Hong Kong's South China Morning Post.
Ports
have historically been forced to play catch-up
with shipping lines, which are racing to
introduce newer and larger vessels to achieve
economies of scale.
Roads
to the quayside are crucial too. "In
Manila, it doesn't matter how efficient
the ports are unless the infrastructure
connecting the terminals to a wider network
is improved," Mr Wickmann said.
Insufficient
port capacity and productivity are looming
large as restraints on trade growth, with
Asia likely to suffer the most if delays
in upgrading infrastructure threaten the
sustainability of thriving intra-regional
trade.
For
many working in the logistics, last year
will be remembered as one of gridlock on
the docks, with a number of ports around
the world, including Hong Kong, Shanghai,
Qingdao, Manila, Rotterdam and those on
the US west coast, suffering from congestion.
And in all likelihood, this year will be
little better.
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