Forwarders may re-deploy as Shanghai numbers signal wider China slowdown

SHANGHAI, having trumped Singapore in container throughput, has suffered a 7.1 per cent decline in August while the Lion City enjoyed a 6.6 per cent increase this year, notes the UK's Transport Intelligence.

"This may reflect Singapore's broader exposure to markets such as India, Indonesia and Indo-China. If so, it only highlights the trend out of China," said the Ti analyst.

"A slowing China would have dramatic effects on demand for commodities as well as industrial products from economies such as Japan, Germany and South Korea. Slower trade between these nations would affect both global and national logistics markets substantially," said the report.

This is also reflected in Hong Kong, whose port container volumes are down 2.6 per cent in the year-to-date, with July seeing a 7.1 per cent fall year on year, it said. "It is time that logistics service providers factor-in the consequences of a very different level of trade out of China into their projections for the future," Ti advised.