Shipping lines are expected to incur slower freight rate growth next year compared to this year, according to TransportWeekly.com.
The report, citing HSBC Global Research, said container traffic would grow 12% cent this year, but only 6% next.
The bank’s researchers also forecasted that average growth in freight rates will be at 17% this year, but only 2% next year.
“In a typical year, the (freight) sector generates 55% of earnings in the second half, reflecting the timing of the peak season,” according to the HSBC report.
“On our revised numbers, 48% has been generated in the first half 2010, and 52% is to be generated in the second half. This implies a slowing of momentum in the second half but also that our full year 2010 guidance is prudent,” the report said.
It added that in the first half 2010, the global volume of containers handled grew by 15%, air freight by 25% and parcels by 8%. But the bank’s revised forecasts suggests that sea freight will grow 12% this year, parcels by 8% and air freight by 18%.
– Source: Transport Weekly
