SHIPPING volumes will be up as high as eight per cent this year in intra-Asia trades because of the demand for semi-processed goods between Asian countries before finished products are sent to western markets, according to Tim Wickmann, CEO of Singapore-based MCC Transport.

"Intra-Asia is quite strong now," said Mr Wickmann, whose MCC, an AP Moller-Maersk unit, runs 60 ships. "We're talking about more than 3,500 port pairs. That's a lot of markets and some will grow at 20 per cent, others not so much."

Indonesia trade is strong, he said. Thailand has bounced back after its floods, and Chinese and Vietnamese exports to Asian destinations are robust, he added.

Rates have recovered in the last quarter, but may go awry if European demand collapses as many fear. "People say that problems in Europe won't affect intra-Asia services, but they will."

But Mr Wickmann has second half worries. "MCC will not be adding capacity without cause, he said. "We have completely dropped our growth project. We won't be adding any capacity unless we can do it profitably.

"Rates have gone up since Chinese New Year in almost all trades where volumes have been strong, so finally in April carriers had a profitable month," he said. "The second quarter will be quite good, but I have worries for the second half."