Shipping data show strong trade
Fin24

Shipping data show strong trade

2010-07-02 16:04

Johannesburg - Despite concern over global unemployment and Europe's debt issues, world trade seems to be healthy - judging from shipping container volumes.

In a recent newsletter to clients, Stanlib director Paul Hansen pointed to an 18% year-on-year rise in container volumes, remarking "world trade is strong in 2010". Information was collected by Macquaries Equities Research among 200 container ports in 58 countries.

This confidence, however, does not seem to reflect in the share price of JSE-listed shipping group Grindrod [JSE:GND]. Since April, the share has slid from a high of 1 730c to trade at around 1 420 cents per share.
 
However, when Grindrod reported its full-year results in February, CEO Alan Olivier was upbeat on activity levels. "The improved economic activity - mainly driven by growth in China and India - has led to increasing commodity demand, generally higher commodity prices and a substantial rise in trade volumes."
 
While container data would suggest the economy is on the rebound, there have been a number of shocks around the world. These include a perceived slowdown in economic activity in China, and recent data showing a sharp decline in the US markets.
 If either of these heavyweights lose momentum, it could have a negative effect on global economic growth.

 - Fin24.com

Comments
  • Kevin - 2010-07-03 10:16

    I think the author of this story would have been better off using Trencor as an example - after all their subsidiary Textainer is the world's biggest lessor of intermodal containers.

  • Piet - 2010-07-05 08:24

    Kevin, here's the TRE story. http://www.tickertalk.co.za/blog.php?user=Antonk&blogentry_id=1954

  • John Frith - 2010-07-08 06:44

    Perhaps some economies are growing on the backs of others. China for example using uncompetitive wages.

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