Intra-Asia trade best hope of box shipping: Evergreen chairman

THE intra-Asia market will be the "focal point of the container shipping industry in the future", keeping pace with Asia-Europe and transpacific volumes, according to Evergreen Marine Group chairman Bronson Hsieh.

Speaking to an industry conference in Shenzhen, Mr Hsieh said: "Our company anticipates that the intra-Asia market will continue to benefit from further liberalisation of regional trade and the recovery of the global economy. With such growth potential, we believe the intra-Asia trade will continue to grow and its market size will be able to keep pace with the transpacific trade and the Far East-Europe trade.


"Boosted by the expansion of China`s domestic market, intra-Asia trade was able to reduce the impact of the economic recession. So, in contrast to the severe decline in most trade lanes, the intra-Asia market maintained a high degree of stability throughout the global financial storm," he said, according to London`s Containerisation International.


Citing statistics, Mr Hsieh said that in the first half of this year intra-Asia cargo volumes rose 16.9 per cent compared to the same period last year, surpassing the performance of the long-haul markets from Asia to the US and Europe.


Pointing to a change in the intra-Asia trade, he said that as large-sized newbuildings are being phased into long-haul services, medium-sized vessels will cascade into the trade.


"Previously, vessel sizes utilised in the intra-Asia services were limited to 3,000 TEU due to the capacity of ports and terminals in south east Asia. But excluding the Far East legs of long-haul services, panamax vessels are being deployed on six intra-Asia loops. With the investment in expansion of terminals in ASEAN countries, the fleet size of ships will continue to increase," he said.


Mr Hsieh said the fleet of very large container ships (VLCS) is expected to increase to 335 with an estimated 200 more vessels expected to join the market by the end of 2013.


He said that the use of larger vessels combined with cargo growth had led to congestion in ports in Vietnam, the Philippines and Indonesia. But many countries in ASEAN were prioritising the expansion and improving their terminals, he said.


Mr Hsieh added the free trade agreement struck between China and ASEAN was especially important for the growth of intra-Asia trade, as were improvements to infrastructure, particularly, the improved rail systems between China and ASEAN nations, the agreement to construct the Nanning-Singapore Economic corridor, and development of the Mekong River rail system, which is due to be completed between 2020 and 2025.