UBS forecasts brighter second quarter for Asian container shipping
THE container shipping industry in Asia is expected to break-even after the second quarter, according to UBS Investment Research, reported the Taipei Times. Wednesday, 16.May.2012, 02:19 (GMT+3)
THE container shipping industry in Asia is expected to break-even after the second quarter, according to UBS Investment Research, reported the Taipei Times.
After posting heavy first quarter losses, and facing difficulties in raising freight rates, UBS analyst Richard said: "Earnings recovery from the second quarter could still support the industry's sentiment."
The recent increase in spot rates, broken by a renewed decline, and growth in US container imports may be major factors leading to the sector's recovery, Mr Wei said.
The Asia-Europe forward rate last week dropped below US$1,800 per TEU, its lowest level since February, the report said, citing Shanghai Shipping Exchange data.
Compared with demand from Europe, inbound trade on the west coast of the US grew faster, which may offer some support to transpacific rates, UBS said.
The stronger growth in US container import demand has seen global container shipping firms redistribute their shipping.
Evergreen Marine, Taiwan's largest container shipping firm, said it would launch a new all-water service to the US with MOL, the biggest container shipping line in Japan.
The service, linking major Asian ports to key destinations on the US east coast via the Suez Canal, would begin next month, Evergreen said in a statement.
The Green Alliance, formerly known as the CKYH alliance, also announced on Thursday that it would restructure five loops between Asia and the east coast of the US run by its members as of this month.
The move would enhance its comprehensive service network between Asia and the US by providing more competitive sailing frequencies, shortened transit times and enlarged service coverage, the alliance said in a note.
The alliance, formed in March 2002, is made up of Taiwan's Yang Ming Marine Transport Corp, Cosco, "K" Line and Hanjin.