China's cargo throughput rises 10% in Q2 2023: Fitch Ratings

In terms of container throughput, there was a 6 per cent YoY growth as opposed to the 3 per cent in Q1 2023. This surge is linked to several factors, including an increase in trade activity with the Regional Comprehensive Economic Partnership (RCEP), a previous low base at the Shanghai ports, new foreign trade routes inaugurated at the Dalian port in the first half (H1) of 2023, and a boost in trade with countries along the Belt and Road initiative, as per Fitch Ratings.

While China saw promising throughput growth, its export value painted a different picture, declining 5 per cent YoY. Exports to major players like Association of Southeast Asian Nations (ASEAN), the US, and the European Union (EU) witnessed drops of 10 per cent, 17 per cent, and 7 per cent, respectively. Contrarily, there was an explosive increase of 117 per cent in exports to Russia. ASEAN remained China's top export recipient, surpassing both the US and the EU.

The Shanghai Containerised Freight Index (SCFI) and the China Containerised Freight Index (CCFI) were down 77 per cent and 70 per cent YoY in Q2 2023. Routes from Shanghai to Western regions like the US and Europe were the primary reasons for this decline due to persistently weak demand. The Baltic Dry Index (BDI) mirrored this trend with a 48 per cent decrease, while the Baltic Dirty Tanker Index (BDTI) saw a contrasting 9 per cent drop after experiencing 51 per cent growth in Q2 2023.

Given these patterns, Fitch Ratings anticipates continuous pressure on throughput growth, especially in the container sector, as it's largely dependent on external demand.

Fibre2Fashion News Desk (DP)