Shipping industry still facing stormy waters

International seaborne trade contracted by 4.5% in 2009 – putting the industry at below 2007 levels, after cresting the wave in 2008, according to Unctad’s Review of Maritime Transport 2010. The United Nations Conference on Trade and Development 2010 review estimates that total seaborne trade during 2009 was 7.84-billion tons. Global recovery is proving slower than that which followed previous recessions, and is subject to numerous uncertainties and to the fragile global economic conditions, the study says. Seaborne trade in dry bulk commodities grew by an estimated 1.4% in 2009. However, bauxite and alumina – which are key components in aluminium production and are used primarily in the transport and construction industries – suffered a 23.2% decline. Volumes of phosphate rock, used as a fertiliser, dropped by 38.7%. The boost in volumes came from iron ore shipments, which rose to an estimated 907 million tons in 2009 – an increase of 7.8% over the previous year. China accounted for much of the increase in iron ore trade, with imports growing by 38.9%, whereas Japan’s imports declined by 24.8% and Western Europe’s by 38.2%. Pressure on rates will continue as new vessels come on line. At the beginning of 2010, the world merchant fleet reached 1.276 million deadweight tons (dwt) – an increase of 84 million dwt over 2009.