Transpaciffic Cargo Growth Holds Steady, Shifts to East Coast Ports


Oakland, CA / September 27, 2007 - Cargo demand from Asia to the U.S. remains healthy heading into the second half of the year, but the traffic flow has increasingly shifted to all-water U.S. East Coast services via the Panama Canal.

Revised figures released by the Transpacific Stabilization Agreement (TSA), reflecting cargo carried by its members, show that container volumes shipped during the first half of 2007 totaled 2.06 million 40-foot containers (FEU), up 7.6% from the 1.92 million FEU moving during the same period in 2006. The overall increase reflected a near 6.8% increase in volumes moving via the West Coast (from 1.52 million to 1.63 million FEUs), and an 11% increase in East Coast all-water shipments.

Over July and August, the growth gap widened: While volumes from Asia to the West Coast grew 4.8% in July and 0.3% in August, all-water East Coast traffic increased by 24.3% and 28.8%, respectively. Total transpacific cargo grew by 8.8% in July and 6.1% in August.

“Shippers appear to be taking a wait and see attitude in the short term,” said TSA Executive Administrator Brian M. Conrad. “They want to see how difficulties in the U.S. housing market shake out, and the extent to which consumer spending is affected. They’re concerned about upcoming West Coast labor negotiations, and potential on the West Coast for rail congestion and trucking shortages.

“There are a number of positive signs in the U.S. economy outside the housing sector, and we expect volumes to strengthen in coming months,” Conrad added. “To look at a snapshot of Southern California ports in a single month, as some observers have tended to do, can be misleading. Cargo growth may have slowed, but it’s hardly in some kind of dramatic decline.”

TSA is a research and discussion forum of 14 major container shipping lines serving the trade from Asia to ports and inland points in the U.S.

Members include:
APL, Ltd.

CMA-CGM
COSCO Container Lines, Ltd.

Evergreen Line

Hanjin Shipping Co., Ltd.

Hapag Lloyd AG
Hyundai Merchant Marine Co., Ltd.

Kawasaki Kisen Kaisha, Ltd. (K Line)

Mediterranean Shipping Co.
Mitsui O.S.K. Lines, Ltd.
Nippon Yusen Kaisha (N.Y.K. Line)
Orient Overseas Container Line, Ltd.
Yangming Marine Transport Corp.

Zim Integrated Shipping Services


Contact: Niels Erich
T: (415) 379-1414
F: (415) 358-4540
E: n.erich@comcast.net


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