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Moody's: Strong dollar to boost imports and 2016 US box volumes 2-4pc

A STRONG US dollar is expected to boost American imports, resulting in a three to four per cent increase in the country's container volume in 2016, according to a Moody's Investors Service.

Moody's: Strong dollar to boost imports and 2016 US box volumes 2-4pc
21 February 2016 - 22:36
Moody's: Strong dollar to boost imports and 2016 US box volumes 2-4pc

A STRONG US dollar is expected to boost American imports, resulting in a three to four per cent increase in the country's container volume in 2016, according to a Moody's Investors Service.

"Although weaker global demand and a strong US dollar have weakened export activity, the US is a net importer with an improving economy," said Moody's analyst Moses Kopmar.

"We believe this will support US consumption and drive cargo demand at US ports," he said.

Moody's Macroeconomic Board expects the US economy to grow two to three per cent in 2015 and 2016, and US container volume typically tracks economic growth.

Thus, the outlook for the US ports is stable for 2016 on the expectation of continued economic growth and a steady rise in US container volume.

"Overcapacity in the container market continues to depress freight rates, as supply growth outpaces demand growth," Mr Kopmar said.

"While capacity is tighter for landside freight transport, such as truck and rail, competition and excess capacity have pushed down spot rates in these markets as well," he said.

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