Container Traffic Expected to Continue to Increase in 2011
Container traffic is on the rise in 2011; that is the word from the recent Trans-Pacific Maritime Conference in Long Beach, Calif.
Trans-Pacific traffic—or traffic between the United States and Asia and the Indian subcontinent—is expected to increase “at a healthy rate of 9.1 percent” this year. The growth is tapering off from last year’s reported 10.4 percent increase, and traffic has yet to return to 2007’s peak volumes.
Still, eastbound traffic—meaning U.S. imports from Asia and the Indian subcontinent countries of Bangladesh, India, Nepal, Pakistan, Sri Lanka—is forecast to grow 8.2 percent this year to 13.5 million TEUs. The increased traffic is fueled by an expanding U.S. economy bolstered by increased consumer spending.
“Several factors contribute to the growth forecast of trans-Pacific eastbound trade, including payroll-tax reductions, extension of the Bush-era tax cuts, and wages and salaries rebounding in 2010 by 3.5 percent after falling by 1.8 percent and 2.5 percent in 2009 and 2008 respectively,” said Mario Moreno, an economist with the Journal of Commerce, which produces the annual conference.
Trans-Pacific westbound trade—or exports from the U.S. to Asia and the Indian subcontinent—is also on track to increase 11 percent to 6.9 million TEUs, which is particularly encouraging compared with last year’s meager increase of 4.3 percent. Export demand is driven by Asia’s growing economies, particularly in China, where wages are up and demand for U.S. goods continues to rise.—Alison A. Nieder
