China’s port capacity exceeds demand

China’s port and shipping industry has been at its lowest ebb this year in terms of performance, and the situation may worsen in 2009, Xinhua Business Weekly reported.

This is the consensus of the 140-plus representatives representing 94 container wharves nationwide, attending the China Port, Container Wharf Summit Forum.

The transport capacity of shipping companies has far exceeded the market demand in China at present.

The freight charge for routes to Asia and America has dropped from US$1,000 per TEU early this year to $300 to $400 at present.

Many shipping companies have annexed sea routes and sealed orders to new ships. Handling capacity of ports is also oversupplied.

It is expected that the container handling capacity of Shanghai International Port (Group) (SIPG) will reach 28.5 million TEUs this year, falling short of the capacity target set earlier this year.

Source:CNA

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