Neptune Orient Lines Ltd, Mitsui O.S.K. Lines Ltd. and other shipping companies said they will carry between 10 percent and 12 percent more cargo to the US from Asia this year, more than earlier forecast, bolstered by growth in the world's largest economy.
With new shipping capacity forecast to grow by 9.5 percent or less this year, the shipping lines say they expect to proceed with a previously announced rate increase of US$450 for each 40-foot container, they said in an e-mailed statement.
"This would suggest that pricing power remains with the shipping operators," said Peter Williamson, an analyst at ING Financial Markets. "If [exporters] want quality space, they would have to pay for it. It looks like volume growth looks robust and there isn't enough capacity to meet it."
Demand for containers to ship clothes, computer monitors and other Asian exports led shipping lines to raise freight rates to the west coast of the US by as much as one-fifth last year.
That has driven up profits and share prices of shipping companies.
The shipping lines in September predicted they would carry 10 percent more cargo to the US West Coast this year.
Shares of Evergreen Marine Corp rose as much as 6.7 percent to NT$35 in Taipei, and traded at NT$34.6 at 10:22am in Taipei. Kawasaki Kisen Kaisha Ltd's stock rose as much as 2.1 percent in Tokyo.
"From all indications, the coming year will see robust trade for US importers and retailers and for the carriers handling their transportation and logistics," said Albert Pierce, executive director of the Transpacific Stabilization Agreement, which includes Neptune Orient and 13 other shipping lines.
The US economy expanded at its fastest pace in two decades in the third quarter, with consumer confidence this month surging to the highest level in three years.
Asian exports to the US rose 7.1 percent in the first 11 months of last year to US$421 billion, according to the US International Trade Commission.
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