Latest News:  
Beijing   Thundershower/Moderate rain    28 / 24 ℃  City Forecast

English>>China Business

China's shipping industry in recession amid slowing economy

(Xinhua)

08:14, July 27, 2012

China's shipping industry is grappling with a recession.(Photo/China Daily)

BEIJING, July 26 (Xinhua) -- China's shipping industry is grappling with a recession caused by waning demand and higher costs, and many small businesses are facing bankruptcy, the Ministry of Transport said Thursday.

In the first six months, turnover at ports increased 7.2 percent year on year to 4.74 billion tonnes, 6.1 percentage points lower than the growth rate in same period last year. A drop in domestic traffic was to blame, according to figures released by the ministry at a press conference.

Container traffic at those ports expanded 8.8 percent to 84.59 million TEUs, 4.3 percentage points lower than the same period a year ago.

The slowdown in the shipping industry reflects the macro-economic operation, said He Jianzhong, spokesman of the ministry.

China's economy cooled to 7.6 percent in the second quarter, the lowest reading since the third quarter of 2009, as a result of sluggish exports, the domestic property market and its self-geared slowdown of fixed-asset investment.

Qinhuangdao Port on China's northern coast, the nation's coal-shipping center which is also seen as a barometer of the economy, should have experienced a busy July, as daily transport capacity was at least 50 vessels per day in the past. However, only one-quarter of that capacity was achieved this July, and inventories hovering near the maximum storage capacity piled up.

He attributed the overstock to less demand caused by a slowdown of electricity consumption, the overall economy and falling import prices.

Concerned logistic departments should team up to de-stock, but the fundamental way to sort out the problem is to spur the economy and boost demand, He said.

Email|Print|Comments(Editor:李倩、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. PLA helicopter unit open door to foreign media

  2. Disabled Afghans receive exercises with prosthetic legs

  3. China's shipping industry in recession

  4. Women should not drink too much coffee

  5. Great Wildebeest Migration sets off

  6. Playing with lightning

Most Popular

Opinions

  1. What to expect at London Olympics: Star athletes
  2. What to expect at London Olympics: Beauties
  3. US seeks to create new waves in S.China Sea
  4. Labor test for policymakers
  5. What to expect at London Olympics: Opponents
  6. What to expect at London Olympics: Strong teams
  7. China's bond of commitment
  8. Make intl aid more effective and balanced
  9. Lead economy on right track
  10. What to expect at London Olympics: Participants

What's happening in China

Dumex raises milk powder price by more than 10 pct

  1. Professor who forged diploma dismissed
  2. Cities upgrading drainage systems after floods
  3. Peking Man site damaged by heavy rainfall
  4. Army rescue team assists flood victims
  5. Guideline issued to protect Good Samaritans

China Features

  1. Netizens blast Youku over child porn videos
  2. Let languages grow freely
  3. 'Water-dripping' bed of Tujia nationality
  4. Manufacturing sector faces cost challenges
  5. Cooperation key to a bright future of East Asia

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai