DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/99eb2d/singapore_freight) has announced the addition of the "Singapore Freight Transport Report Q1 2011" report to their offering.
Business Monitor International's transportation associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Singapore's freight transportation industry.
BMI believes that free-trade agreements (FTAs) between the ASEAN nations and others in Asia are fuelling trade in the region and, as a result, are providing freight transport companies with new markets in which to expand their services. A new twice-weekly freighter service has been launched by Singapore Airlines (SIA) between Singapore and Tokyo, going via Taipei. From November 6 the frequency has increased to thrice-weekly, owing to popular demand. This comes in addition to another new service being launched by SIA. The Singapore flag-carrier, which has a strong presence all over South-East Asia, is also launching a twice-weekly freighter service from Bangkok to Tokyo.
BMI notes that this increased demand for freighter services between Japan and South-East Asia comes on the back of an FTA signed by Japan and the 10 ASEAN nations on December 1 2008. The value of trade between Japan and Singapore increased dramatically immediately following the signing of the FTA. The total value of trade between the two countries grew in 2005, 2006 and 2007 by 4%, 9% and 3% respectively. In 2008, however, the total value shot up by 19%. Unfortunately, that increase was nullified during the recession last year, when the total value fell by 27% on 2008. However, we are confident that as the world economy recovers and restrictive tariffs between the two countries are removed by the FTA, this loss will be recouped once more.
It is not only in the airfreight sector that BMI has seen trade boosted on the back of FTAs signed with the ASEAN nations. The ASEAN nations have recently signed an FTA with China, and, while talks between India and China have so far failed to result in anything concrete, India also has an FTA in place with the ASEAN nations. On the back of these agreements intra-Asian trade looks set to provide a cushion to freight transport companies that are still wary of developments in the West and are looking for another market to hedge their risk.
BMI Freight Transport desk forecast for Singapore's air freight shows a slight year on year growth of cargo traffic for the whole of 2010. We see Singapore's air freight volume recovering by just 0.56% y-o-y this year to 1.642 tonnes, after a contraction of 12.06% in 2009. In 2011, we project that slow growth will continue, with volumes increasing by 0.66% y-o-y.
During the global recession in 2009 Port of Singapore (POS) tonnage fell by a sharp 8.4% to 472.3mn tonnes; now, in view of the strength of Singapore's recovery, we see all of that ground being made up. BMI estimates POS tonnage rose by 6.9% in 2010 and we are projecting a further 4.2% expansion in 2011 to reach 526.34mn tonnes, above the pre-2009 peak of 515.42mn tonnes.
Companies Mentioned:
- Singapore Airlines (SIA)
- PSA International
- DHL International
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