Key eastern ports report strong cargo rebound

Container volume through two of China's key eastern ports, Shanghai and Ningbo-Zhoushan, saw a strong recovery in September from August, and their highest cargo flows of the year, cementing the opinion that the country's export growth contraction is bottoming out as economic growth regains momentum.

Hit by hurricanes, both Shanghai and Ningbo-Zhoushan had seen sluggish performance in August.

But the latest figures show container throughput at Shanghai, the world's busiest container port, grew 11.6 percent year-on-year during September to 2.9 million twenty-foot equivalent units, or containers, a 5.6 percent volume growth on August.

The port handled 44.4 million metric tons of cargo during the month, up 10 percent from the same period last year, and up 12 percent on August.

From January to September, the port handled a total of 24.22 million containers, up 1.9 percent from the same period last year.

Chen Xuyuan, chairman of China's largest port operator Shanghai International Port (Group) Co Ltd, said: "We expect to reach the goal of 32.5 million containers this year and Shanghai port will remain the world's busiest."

Ningbo-Zhoushan port handled 1.6 million containers in September, up 20 percent from a year earlier, the port said. It also handled a total of 40.8 million tons of cargo, up 23.5 percent from a year earlier.

Meanwhile, according to a report by Shenyin & Wanguo Securities Co, other Chinese ports are also expected to see a steady rebound in September.

It said that ports in southern China are likely to see container volume jump by 14.2 percent from a year earlier to 3 million containers, and those in northern China can expect to see an increase of 2 percent to 1.8 million containers.

Industry analysts attributed the cargo volume recovery to Christmas orders placed by retailers in Europe and the United States, and a raft of export-boosting measures adopted by the Chinese government.

But they also warned that the strong growth was partly caused by statistical blips within last year's low volume growth, and remained cautious about continuous strong growth in cargo flows in coming months.

Last year's November and December performance was especially strong, and analysts don't expect that to be matched, despite the strong September result. Overall, though, economists and trade experts suggest the figures signal that the country's export sector is gradually recovering from its recent woes.

"The third quarter will probably be the bottom of China's economic growth slowdown, and there are signs economic growth is taking place," said Wang Jun, senior economist with China Center for International Economic Exchanges.

China's exports jumped by 9.9 percent in September from a year earlier, a record monthly high and much higher than the 2.7-percent growth in August.

Premier Wen Jiabao said on Wednesday that the country's economy in the third quarter showed signs of taking a turn for the better and "will continue to stabilize as government policies get further implemented".