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May 14 2018

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6 The Journal of Commerce | May 14 2018 Spotlight China port volume growth resilient Broad global economic expansion kept growth at China's Top 20 ports in the first quarter on par with last year's level of 6 percent as volume reached 48.9 million TEU, according to the Shanghai Shipping Exchange. China's GDP grew 6.8 percent in the first quarter, and IHS Markit forecasts that growth will moderate but remain strong at 6.7 percent this year, compared with 6.9 percent in 2017. World GDP growth is forecast to accelerate this year to 3.4 percent ONE carriers merge on firmer footing NYK Line, MOL, and "K" Line entered the new Ocean Network Express (ONE) joint venture with revenue and volume heading mostly in the right direction, but their total Asia-US container growth lagged the market in the first quarter. The first three months of 2018 was the last quarter of the Japanese carriers' financial year for the container shipping units of NYK Line, "K" Line, and MOL before they operated as ONE starting April 1 and became the sixth- largest global carrier. The three carriers recorded combined year-over-year growth in Asia import volume of 2.1 percent to 610,115 TEU, slower than the 8.9 percent increase in volume for the trade as a whole, according to PIERS, a sister product of The Journal of Commerce within IHS Markit. The 8.9 percent expansion in the first quarter of this year is more than double the increase in the same period of 2017. "K" Line was the only one of the three carriers to record a decline in Asia-US volume in the first quarter, dropping 4.9 percent to 214,392 TEU. Its market share in the Asia-US trade also slipped by 0.8 points to 5.6 percent, with MOL edging down 0.2 points to 5.1 percent, and NYK losing 0.1 points to 5.2 percent share of the market. It was a similar two-up, one-down scenario in the annual results of the three Japanese carriers. This time it was MOL in the negative numbers, as the one-off restructuring costs related to separating its container unit ahead of the ONE launch came in at $672 million. Excluding those costs, the carrier actually made a $141 million profit. The other two carriers turned around losses recorded in the last financial year. NYK Group posted a 2017 profit of $190 million, growing its liner trade revenue by 18 percent to $6.3 billion. "K" Line reported a $95 million net profit, with the container shipping segment growing 15 percent compared to 2016 and generating revenue of $5.4 billion. Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, Executive Editor, The Journal of Commerce and Mark Szakonyi 202 872 1234, Managing Editor: Barbara Wyker 908 777 3217, Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, Bill Mongelluzzo West Coast 562 428 5999, Hugh Morley Northeast, Mexico 646 679 3475, Eric Johnson Technology 213 444 9326, Greg Knowler Europe Editor, Maritime & Trade, IHS Markit +44 7976798770, Turloch Mooney Global Ports, Maritime & Trade, IHS Markit +852 9011 9109, Associate Editor: Ari Ashe Southeast Ports, Intermodal Rail 202 548 7895, Web Editor: Joseph Lazzaro 917 309 0148, Data Analyst: Dustin Braden 646 679 3450, Senior Content Editor: Alessandra Gregory Barrett, 860 248 5238 Senior Designer: Sue Abt, 862 371 3534, Designer: Bryan Boyd, 908 910 7849, Publisher: Tony Stein, 770 295 8809, Sales: Cindy Cronin, Strategic Account Manager Southeast, Gulf, Canada sales, 954 551 8305 Zachary Gorman, Account Executive Northeast, Illinois sales 646 679 3466 Jean Gibbons, Senior Sales Executive West Coast, Midwest sales, 706 469 7160 Ria Van den Bogaert, Sales Representative Europe, Middle East sales, +32 2 569 8905 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 For Magazine Subscription Customer Service: 450 West 33rd St., 5th Floor, New York, N.Y. 10001 973 776 8660 • 800 952 3839 Managing Director, Media and Events, Maritime & Trade, IHS Markit, Rhiannon James Senior Director, Content, Maritime & Trade, IHS Markit, Peter Tirschwell Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Marketing Programs Manager, JOC, Jesse Case The Journal of Commerce ©2018 The Journal of Commerce — All Rights Reserved For more information, visit our website, 15.8% 11.0% 10.2% 8.6% 8.1% 46.2% Ocean Network Express Cosco Shipping Evergreen Line Ma ersk Line CMA CGM* Others ONE leads US Asia import market share Source: IHS Markit © 2018 IHS Asia import market share in Q1 2018 Notes: *Does not include APL compared with 3.3 percent last year. The container growth comes despite a 30 percent decline in US exports to China in the first two months of the year, indicating that volume is robust enough at Chinese ports to offset the losses from the country's ban on importation of certain kinds of waste. China's Top 5 ports all recorded growth in the first quarter, with Shanghai up 3.8 percent to 9.7 million TEU, Shenzhen up 6.4 percent to 6 million TEU, Ningbo-Zhoushan up 10.6 percent to 6.5 million TEU, Guangzhou up 9.7 percent to 4.9 million TEU, and Qingdao up 0.7 percent to 4.5 million TEU.

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