The growth was constrained by weak external demand, with some relief from early shipments ahead of potential US tariff increases, while sluggish domestic investment and consumption further exacerbated the slowdown, Fitch Ratings said in a press release.
Meanwhile, the Shanghai Containerised Freight Index and the China Containerised Freight Index both fell by 27 per cent quarter-over-quarter (QoQ) in Q4 2024 but remained up by 107 per cent and 69 per cent YoY, respectively, on strong demand from stockpiling effects.
The credit rating agency now expects container shipping rates to moderate in 2025, as the Red Sea conflict subsides, and new container ships are delivered. The US tariff hikes in China are likely to exacerbate uncertainty, while the US’ broad tariffs on goods from other markets could further curb demand for Chinese exports. Consequently, it expects throughput growth to decelerate in 2025.
Earlier China’s export value climbed 10.0 per cent YoY in Q4 2024, driven by a low base effect and strong front-loading ahead of potential US tariff hikes, the release added.
Exports to the US surged by 16.0 per cent YoY in December, contributing to a 10.5 per cent increase for Q4 24. Shipments to ASEAN and the EU also saw robust growth, rising 16.6 per cent and 9.6 per cent YoY, respectively, followed by a weak Q4 2023, when exports to ASEAN declined by 9.3 per cent and EU by 9.7 per cent YoY.
ALCHEMPro News Desk (SG)
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