Ouch! China Shipping Container Lines (CSCL) forecasts 10% drop in traffic

October 19, 2008 by SwizStick  
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Via Bloomberg.com:

“Traffic will drop at least 10 percent for the full year,” Zhang Denghui, assistant president of China Shipping (Group) Co., parent of China Shipping Lines, the country’s second-largest container line, said in an interview yesterday. “An even much larger drop is possible, as the full impact of the global economic turmoil is yet to come.”

Overseas sales of China-made toys and other products are falling as the U.S. slips into recession and other economies slow down. The yuan’s 6.9 percent gain against the dollar this year has also forced some domestic manufacturers to stop production for export, reducing orders for containerized traffic.

China Shipping has always, as their name suggests, been heavily reliant on Chinese exports. With demand to the U.S. dropping and growth to Europe slowing considerably it’s inevitable that volumes would take a hit.

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