ZIM Integrated Shipping Lines (ZIM Lines) expects a 5-8% growth in the Philippine shipping industry anchored on the improving global economy and increased local spending due to the upcoming elections.
“The global economy, along with shipments, is projected to grow in 2010 after reeling from the worst in 2009 when containership, bulk, and tankers significantly slowed down,” ZIM Integrated Shipping CEO Jun Ynion said in a statement.
In the local front, Ynion predicted the national elections will boost fiscal spending and investments. “More importantly, the remittances from OFWs will continue to grow to boost the consumption locally.”
Last year, when global trade contracted sharply and gross domestic product (GDP) growth slowed to less than 1%, the local shipping sector registered double-digit declines.
This year, the government expects a 2.6-3.6% growth in GDP.
Ynion said there are expectations of a restoration in international freight rates, but shipping lines are “extremely cautious about balancing demand and supply… Any fervent move can jeopardize the situation.”
Ynion added, “Shipping companies have also been implementing slow steaming, which absorbs excess capacity quicker than anticipated, especially for the larger vessels.”
