Canada Shipping Report Q2 2012
- ID: 2077716
- February 2012
- Region: Canada
- 129 Pages
- Business Monitor International
We estimate that Canada's economy grew by 2.4% in real terms in 2011, which was a challenging and volatile year by any measure. We expect to see growth of around 1.6% in H112, followed by a steady reacceleration over the course of H212, leading to a full-year average growth figure of 2.0% for 2012. This trend should continue into 2013, when we expect GDP growth of 2.5%. Our outlook for Canada's shipping sector remains positive, with volumes set to be boosted by increasing imports as well as coal exports.
Headline Industry Data
- 2012 Port of Vancouver tonnage throughput forecast to grow 2.7%. Over the medium term we project average annual growth of 2.6% to reach 138.37mn tonnes in 2016.
- 2012 Port of Vancouver container throughput forecast to grow 5.6% in 2012. Over the medium term we project a 5.4% increase to reach 3.26mn twenty-foot equivalent units (TEUs) in 2016.
Key Industry Trends
DP World Increases Exposure To Canada As Imports Remain Strong DP World is expanding its operations in Canada, having signed an agreement to operate the port of Port of Nanaimo's facilities. BMI believes the move is a positive step, as the country's imports remain strong. We caution, however, that Canada has yet to recover its pre-downturn export levels.
Canadian Ports Witness Decline In US-Bound Containerised Cargo Four Canadian ports - Prince Rupert, Vancouver, Halifax and Montreal - have reported a decline in their share of US-bound containerised cargo between 2000 and 2010. During a Federal Maritime Commission (FMC) inquiry, the ports revealed that their share of US-bound containers stood at 2.5% in 2010, compared with 3.2% in 2000. In contrast, US ports handled more than 8% of containers destined for Canada. The inquiry was launched by the FMC in November 2011 at the request of the Washington State congressional delegation, in order to examine the economic factors that drive shippers to choose Canadian ports. US West Coast ports have complained that the imposition of the Harbor Maintenance Tax (HMT) on imported goods has resulted in cargo being diverted to Canada. Meanwhile, Canadian officials have opposed plans to collect the HMT on US-bound containers at the border, as it would result in new trade barriers.
Risks To Outlook
BMI's positive outlook for the Canadian economy indicates a strong base for growth at the country's ports. Total throughput will be driven by strong imports, boding well for ports and the shipping sector. On the downside, a significant slowdown in the US economy would be extremely negative for Canadian business confidence, commodity prices and exports, and therefore for the shipping sector. Canada's exports are still struggling to recover from the global economic downturn. Similarly, although exports to Asia-Pacific countries increased in 2010, a significant slowdown in the US would be negative for commodity prices and exports, and therefore presents potential downside risk to our throughput forecasts.
Business Monitor International's Canada Shipping Report provides industry professionals and strategists, corporate analysts, shipping associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Canada's shipping industry. SHOW LESS READ MORE >
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Industry Trends And Developments
Canada Container Market Overview
Port Metro Vancouver Throughput Overview
Port Of Montreal Throughput Overview
Table: Trade Overview, 2008-2016
Table: Major Port Data - Throughput, 2008-2016
Table: Key Trade Indicators, 2007-2016 (US$mn and % change y-o-y)
Table: Canada's Main Import Partners, 2002-2009
Table: Canada's Main Export Partners, 2002-2009
Mediterranean Shipping Company (MSC)
COSCO Container Lines Company Limited (COSCON)
China Shipping Container Line (CSCL)
Hanjin Shipping (Container Operations)
Mitsui OSK Lines (MOL) (Container)
- Maersk Line
- Mediterranean Shipping Company (MSC)
- CMA CGM
- COSCO Container Lines Company Limited (COSCON)
- Evergreen Line
- China Shipping Container Line (CSCL)
- Hanjin Shipping (Container Operations)
- Mitsui OSK Lines (MOL) (Container)