BRIC national ports continue to hold their own in cargo growth up 7.1 per cent year on year to 90.7 million TEU during the first half of 2013
Drewry: BRIC economies to enjoy major cargo growth into 2014
BRIC national ports continue to hold their own in cargo growth up 7.1 per cent year on year to 90.7 million TEU during the first half of 2013 compared to North America's 1.2 per cent increase and Europe's zero per cent despite overheated economies, according to London's Drewry Maritime Research.
Cargo carried in and out of Brazil, Russia, India and China has remained strong supported by a lack of transshipment traffic despite overheated economies and overcapacity.
The forecast for growth in the BRIC nations is positive despite rising debt and inflation in Brazil and China, which will serve to increase cargo growth, said Drewry.
The report highlights the precarious position of China's strength in figures shown in its lion share of loaded and discharged container throughput at 78.9 million TEU of the overall 90.7 million TEU.
India recorded the next highest figure at over five million TEU loaded and discharged at its port. This shows a wide deficit from the rest of the BRIC economies.
China's influence is wide and it has the power to bring the region down with it should it fall. It remains vulnerable to rising labour costs and various macro-economic concerns.
India is particularly at risk as the poorest performer despite a population just below China's 1.35 billion at 1.24 billion. This was reflected in first half figures at 172,736 TEU exported to Greater China, down 22 per cent same period 2012 against the east coast of South America (mainly Brazil) and China which showed container throughput increase of 12 per cent and 8.5 per cent respectively.
India has struggled to maintain cargo volumes unlike China which has concentrated on manufacturing rather than service industries. The country is plagued by congestion where several days delay at every turning point is the typical, said the report, adding to issues of red tape and alleged unfair trading practices in India.
However, the freeing up of government law over overseas investment for new container terminal concessions may help future cargo growth for India.