What's happening in Intra Asia
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Competition swells as all join intra-Asia gold rush, but where is the infrastructure to cope? |
DESPITE a slowdown in the second half of 2014, intra-Asia remains the world's fastest-growing trade corridor, with recent estimates from MCC Transport placing volumes at 30 million TEU a year. While the headlong rush into the intra-Asia trade parallels that of the stampede into mega ships, both phenomena beg the question: Where is the infrastructure to cope with the growth?
With feeders and coastal services, some expect that exceed 35 million TEU. Maersk's regional specialist Singapore-based MCC Transport, expects intra-Asia volume to represent 22 per cent of global box trade.
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Reinvigorating shipping to unleash Indonesia's export potential will awaken a sleeping giant |
WITH costs of exports mounting in China, outsourcing focus has lately turned to India and Vietnam with a view to developing intra-Asian trade links. But perhaps deserving as much if not more attention is Indonesia where steps are being taken to enhance export potential.
In the view of Maersk Line, outlined in its latest country analysis in its "Moving Global Trade" report, suggests that Indonesia is worthy of exploration given the global macro-economic picture, which is not good. The International Monetary Fund (IMF) reduced its predictions for world GDP growth in 2015 from 3.9 per cent to 3.5 per cent and the US has suffered first quarter GDP shrinkage of .07 per cent.
Maersk's country manager, Jakob Sorensen, president director of Maersk Line in Indonesia, first looks at the background.
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Intra-Far East trade gives smaller ships new lease of life as demand for new services rise
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THE intra-Far East trade will continue to power the demand for containerships this year, as carriers develop further regional services within East Asia, writes Alphaliner. By the end of June, at least 33 new intra-Far East weekly loops will have been launched, based on Alphaliner records. These 33 services absorb some 98 ships, surpassing all other tradelanes in terms of the number of ships taken in.
The majority of the new loops are focussed primarily on intra regional trade, whereas a few services are feeder-oriented. The demand for vessels in the intra-Far East sector is spread across the 500 to 5,000 TEU range, propelling upwards the charter rates for these ships.
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Changing lanes: More recent action on the active intra-Asian shipping market |
FROM being a poor man's realm, intra-Asia has become the biggest by volume, and perhaps, considering the gathering strength of the region and related areas, combined with the continuing frailty of more mature economies to the east and west, this sector may well become No 1 in the life times of most of people engaged in the trade today.
One is much encouraged by the action in recent years. One can even look back at the progress made in the single month of June and be impressed.
Four carriers have launched new FE-India-ME services with Emirates Shipping Line (ESL), KMTC, Hanjin Shipping and RCL offering loops connecting the Far East with India and the Middle East.
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2015
June
- Mediterranean & Africa Trade
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2015
May
- China Trade
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2015
April
- Europe Trade
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2015
March
- U.S. Trade
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