In its “Singapore Freight Transport Report Q4 2013,” Business Monitor International (BMI) predicts that airfreight tonnage through Singapore Changi Airport will contract by 1.8 percent in 2013 year-over-year.
Growth from 2013 to 2017 is expected to average 0.6 percent per annum.
The Port of Singapore’s gross tonnage is seen to contract by 1.6 percent in 2013 compared to 2012, with average annual growth at 1.6 percent during 2013-2017.
The country’s overall trade will grow by 1.6 percent in real terms in 2013, to average 3.8 percent through 2017.
“The city-state of Singapore’s role as a global transshipment hub is both its blessing and its curse,” BMI said. “In times such as these, when key markets in Europe and the U.S. are either recessionary or growing sluggishly, it can be hit by depleted freight volumes. In 2013, we forecast that both the port and airport’s total tonnage volumes will undergo a contraction.”
On the risks to Singapore’s outlook, the main one lies on the downside. “This dynamic city-state economy depends critically on its U.S., Euro zone, and mainland China export markets, and each of those three faces varying degrees of downside economic risks,” said BMI. “Further, the country’s Port of Singapore and Changi Airport both handle huge volumes of transshipment volumes, which could be affected should the global economy slump once more.”