China’s port growth slows in Q2 ’24 – Fitch

China’s port activity grew in the second quarter of 2024, albeit at a slower pace than the previous quarter, as reported by Fitch Ratings. Total cargo throughput rose by three per cent year-on-year, down from a six per cent growth rate in the first quarter.

Container throughput fared better, rising seven per cent YoY, driven primarily by robust demand from the Association of Southeast Asian Nations (ASEAN). However, domestic demand showed signs of weakness.

Export value also rebounded in the second quarter, increasing by 4.4 per cent year-on-year after a contraction of 1.7 per cent in the first quarter.

Exports to ASEAN surged 15 per cent year-on-year, while those to the United States returned to growth with a 2.5 per cent increase. Moreover, European Union exports remained flat.

Shipping rates, as measured by indices such as the Shanghai Containerised Freight Index and the Baltic Dry Index, stayed elevated due to ongoing tensions in the Red Sea. Fitch expects these rates to moderate as a larger number of container ships are delivered this year.

Attribution: Fitch Ratings report
Subediting: M. S. Salama