CONTAINER volume through North European ports will remain sluggish for the rest of the year as the continent's economy struggles, Hackett Associates and the Bremen-based Institute of Shipping Economics said in their Port Tracker report.Containerised imports from European ports are projected to decline more than two per cent this year, compared with a 3.8 per cent increase last year.
Exports are expected to rise 2.4 per cent this year, compared with an increase of nearly 11 per cent last year.
The study shows that during the next six months, imports are expected to rise two per cent, compared with a decline of 0.3 per cent a year earlier. Exports are expected to inch up 0.1 per cent, compared with a 7.9 per cent increase during last year's June-November period.Economist Ben Hackett, founder and principal of Hackett Associates, said: "The European economic data makes for depressing reading.
A no-growth GDP in Q2 in Germany is interpreted as a major achievement. Austerity remains the policy."Mr Hackett and Michael Tasto of ISL, the report's co-author, said weak cargo volumes would affect terminals and pressure carriers to reduce rates.
He noted that carriers already are dropping voyages during what normally is the peak season.Mr Tasto said carriers have stretched their capacity by slowing vessel speeds and putting 11 ships on weekly Asia-Europe services, adding that carriers cannot expect to squeeze more out of slow-steaming.Mr Hackett said carriers are likely to resume price-cutting, and that 2010 may turn out to be the carriers' only profitable year in five years.
"They profess to avoid a price war this time around, but we doubt that the habit of a lifetime can be avoided," he added.
Exports are expected to rise 2.4 per cent this year, compared with an increase of nearly 11 per cent last year.
The study shows that during the next six months, imports are expected to rise two per cent, compared with a decline of 0.3 per cent a year earlier. Exports are expected to inch up 0.1 per cent, compared with a 7.9 per cent increase during last year's June-November period.Economist Ben Hackett, founder and principal of Hackett Associates, said: "The European economic data makes for depressing reading.
A no-growth GDP in Q2 in Germany is interpreted as a major achievement. Austerity remains the policy."Mr Hackett and Michael Tasto of ISL, the report's co-author, said weak cargo volumes would affect terminals and pressure carriers to reduce rates.
He noted that carriers already are dropping voyages during what normally is the peak season.Mr Tasto said carriers have stretched their capacity by slowing vessel speeds and putting 11 ships on weekly Asia-Europe services, adding that carriers cannot expect to squeeze more out of slow-steaming.Mr Hackett said carriers are likely to resume price-cutting, and that 2010 may turn out to be the carriers' only profitable year in five years.
"They profess to avoid a price war this time around, but we doubt that the habit of a lifetime can be avoided," he added.