Containers
Slower exports rein in Shenzhen volume growth
By Sandra Tsui in Hong Kong - Monday 14 July 2008
Source: World Trade Magazine

Shenzhen is the world's fourth busiest and China's No.2 container port.THROUGHPUT growth at south China’s Shenzhen port in the first half of this year slowed to half of last year’s pace as its major cargo source, Guangdong province, lagged the rest of the country in export growth during the period.

Industry analysts warned that the slowdown may signal a widening export crisis in the country and local media have hinted at a possible resumption of the tax rebate policy that was used by the government in the 1990s to help exporters.

The world’s fourth busiest and China’s No.2 container port handled 10.2m teu in the first six months of this year, 7.2% higher than the same period last year, according to initial figures from the Shenzhen transport bureau.

The transport bureau attributed the slower pace of growth to shrinking US export volume and a 5% fall in throughput in the eastern Yantian container terminals to 4.3m teu.

Chiwan and Shekou located in western Shenzhen and operated by the China Merchants Group, fared better. Chiwan and Shekou handled 3m teu and 2.8m teu, respectively, representing increases of 9% and 30%.

There are 13 more international services calling at Shenzhen this year so far, most of them intra-Asia services. However, more than 100 port calls has been cancelled on North America route, said the bureau.

Guangdong province, the major manufacturing base for exports in southern China, has been hit hard by weak demand from North America, a big cut in tax rebates and more stringent environmental and labour policies.

The province’s external trade volume rose just 15% in the first five months, 11 percentage points lower than the average for the whole of China. Export volume rose 15.6%, 7.3 percentage points below the national average.

Figures for the month of June show a more alarming picture. The value of China’s exports climbed 17.6% to $121.5bn in June, said China’s customs department.

This is the third time the country’s export growth rate has fallen below 20% since 2006. The first and the second times, in March 2007 and February this year, fell into the usual low-cargo period after the Chinese New Year.