Singapore Freight Transport Report Q3 2012

We continue to see Singapore entering technical recession as the economy contracts in Q112, and see continued weakness in H212. This will result in full-year real GDP growth of just 2.6%, versus consensus expectations of 3.6%. With overall exports amounting to well over 200% of GDP, a slump in global trade and financial services will obviously take its toll on growth. This will take an equal effect on the countrys freight transport sector. Singapores pre-eminence as a transhipment hub leaves it particularly susceptible to global headwinds. Although the Port of Singapore had positive news in that its first-quarter throughput matched that of Shanghai, we maintain our view that growth will remain sedate through the year.

Headline Industry Data

- Air freight tonnage growth will fall to 0.9% in 2012 from 2.8% in 2011. Growth will average 1.2% to 2016.

- The Port of Singapores gross tonnage will rise by 1.2% in 2012, with average annual growth at 2.8% during our forecast period.

- The countrys overall trade will grow by 2.5% in real terms in 2012, and to average 4.0% to 2016.



Key Industry Trends



SIA To Manage Scoot Cargo Capacity

Singapore-based air carrier Singapore Airlines Cargo (SIA) is planning an expansion of its services by utilising the 10 tonne belly hold capacity found on the Boeing 777-200 aircraft used by its new budget airline Scoot.

APL Joins Its Rivals In The Red

Like its peers, Singapores APL, the liner shipping business of Neptune Orient Line (NOL), remained in the red for the first quarter of 2012. The company is, however, already addressing the causes of its continued losses by reducing fuel consumption and increasing its coverage of emerging trade routes (ETRs), where growth is high and which are less affected by rate declines.

Bengal Tiger Line Appoints Indian Shipping Agent

Singaporean shipping company Bengal Tiger Line has appointed Indian shipping services company Samsara Shipping as its agent in Nhava Sheva, Mundra, reports Transport Weekly. The appointment is intended to develop Bengal Tiger Lines operations in the region.

Key Risks To Outlook

We continue to believe that the main risk for Singapores freight transport sector lies on the downside, and stems from a worsening global economic performance. This dynamic city-state economy depends critically on its US, eurozone, and mainland China export markets, and each of those three faces varying degrees of downside economic risks. Further, the countrys Port of Singapore and Changi Airport both handle huge volumes of transhipment volumes, which could be affected as the global economy slumps.

The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.