PISFA: Asia offers much growth potential

0
385

INTERNATIONAL seafreight forwarders operating in the Philippines see the Asian market as a key source of growth this year.

Philippine International Seafreight Forwarders Association (PISFA) president Nelson Mendoza told PortCalls seafreight volume is picking up but limited to the region, in particular China, Singapore, Vietnam and Taiwan. And just like last year, imports mainly from China are expected to supply much of the business.

“Exports within the region are also strong as most of us forwarders are experiencing cargo rollovers compared to last year when almost everything was stagnant,” Mendoza added.

Still, the exact recovery period remains a big question mark.

The once dominant markets of United States and Europe, Mendoza said, continue to suffer from low import and export demand due to prolonged effects of the global economic crisis.

And despite the bullish regional market, concerns have been raised on rates that have risen so fast but that are not in proportion to actual cargo volume growth.

Last year, seafreight forwarders finished the year stronger than forecast, with better business conditions experienced in the second half.

PISFA members handled 5-10% less volume last year compared to earlier estimates of a deficit of 15%.