Pacific Carriers Report 16 Percent Market Growth in January-February

Oakland, CA/April 13,2000 - Growth in container cargo from Asia to the
U.S. continued unabated during the first three months of 2000, typica
lly the weakest period of the year for that trade lane. Even after fac
toring in the Lunar New Year in Asia, carrier statistics developed fro
m the Journal of Commerce PIERS database suggest that U.S. consumer an
d business demand for Asia's manufactured goods show no signs of letti
ng up.
The eastbound transpacific market grew by 20.4 percent in January and
9.6 percent in February, compared to monthly totals for the same perio
d in 1999, according to the Transpacific Stabilization Agreement (TSA)
, a carrier discussion and research forum. For the two-month period, t
hat represents more than 16 percent growth over the previous year- to
983,000 20-foot containers (TEU), up from 849,000 TEU in 1999. Average
weekly totals available for March to date suggest a possible 20 perce
nt increase over March 1999.
Any way you slice the numbers, the growth we're seeing is remarkable,"
says TSA executive director Albery A.Pierce. "Ships aren't usually ru
nning this full after the holiday season, certainly not all the way in
to March. Carriers knew that bookings were strong, but I think they we
re still surprised by the actual statistics."
The largest share of first quarter growth has been cargo moving via We
st Coast ports,with much of that total destined for Southern Californi
a- either serving the sizable manufacturing base and consumermarket in
the greater Los Angeles and San Diego metropolitan areas, or moving i
nland by rail or truck to urban and manufacturing centers in the Weste
rn and Sunbelt states.
TSA carriers reported average vessel utilization in excess of 80 perce
nt during the first quarter - an 8 percent improvement over first quar
ter 1999. Utilization in the 80 percent range is considered close th f
ull in the slack season given the way carriers size their fleets to ac
hieve overall supply-demand balance throughout the year, including pea
k periods.
PIERS figures indicate that new carriers entering the trade since last
year accounted for an just over 7 percent of the cargo market during
the past quarter. That left nearly 9 percent cargo growth during the J
anuary - February period for established transpacific carriers.