Fitch: Growth in China’s ports slows in Q3 ’24

Growth in throughput at China’s ports slowed down in the third quarter of 2024 due to weaker global demand and subdued domestic consumption, with Fitch Ratings expecting this trend to continue into the fourth quarter.

Total cargo and foreign trade throughput growth decelerated to one per cent and five per cent year-on-year (YoY) in the third quarter of 2024, respectively, compared to three per cent and eight per cent in the previous quarter.

Container throughput growth also slowed to six per cent YoY in 3Q24, down from 10 per cent and seven per cent in the first two quarters. The decline in growth is primarily attributed to weakening external demand, particularly in key export markets like the US and the EU.

While exports to these regions have shown some recovery, the growth rate has moderated. Exports to ASEAN, which had been a bright spot, also slowed down in 3Q24.

The Shanghai Containerized Freight Index and the China Containerised Freight Index, which measure the cost of shipping containers, peaked in July and have since fallen by about 40 per cent.

The Baltic Dry Index and the Baltic Dirty Tanker Index, which track shipping costs for dry bulk and crude oil, have remained elevated but have shown some signs of stabilisation.

Attribution: Fitch Ratings report

Subediting: Y.Yasser