NEW DELHI : South Asia, where India is the principle player in international trade has emerged as a top container growth market in the world this year according to International Monetary fund report. The report also indicated a steady growth in container volume in carriers handling cargo on the Asia Europe trade route.
Long-term contract rates on the Asia-Europe container trade have been significantly looking up, according to analysts studying data, with the figures nearly 70 per cent higher compared to last year.
They have attributed this to the improving global economy, with the International Monetary Fund, in its World Economic Outlook, pointing out that the global economy is showing signs of solid and steady growth, with China, India, Japan and major economies in Europe being the driving forces.
As a result, carriers on the Asia-Europe trade are heading for a vastly improved year because of the steady growth in container volume.
It is important to note that South Asia to Europe is considered a top container growth market.
As per available data, the average market rate for sailings in this route in August is just over 1,550 US Dollars per TEU. Some rates, however, have also been agreed at much higher levels, report said. The rest of the year, too, looks bright as a strong peak season is expected, analysts said.