What’s a better gauge of economic health; the stock market or global trade?
- Published on Monday, 05 August 2013 11:05
- 1 Comment
DP World said that challenging market conditions meant the amount of goods shipped through its ports fell 5.8 per cent during the first six months of the year.
The government-controlled company, which is the world’s third- largest ports operator, said yesterday that its terminals around the world handled 26.6 million standard container units of cargo, a significant decline on the same period the previous year as volumes fell in Europe, Asia and the Middle East.
Global container operators are battling in a depressed market and DP World said although trade had improved slightly in the three months from April, the difficult market was set to continue.
“Despite a softer first half when compared with the same period last year, we saw an encouraging uplift in containers handled during the second quarter,” said the group chief executive Mohammed Sharaf. “This uplift, while positive, has occurred in challenging market conditions which we anticipate will continue into the second half.
DP World, which is controlled by the conglomerate Dubai World, said container port trade in the UAE remained “relatively flat” compared with the same period last year, handling 6.5 million cargo units.
Across Europe, the Middle East and Africa, DP World’s ports handled 12.8 million cargo units during the six months, down 5.7 per cent on last year and 3.9 per cent on a like for like basis.
The group said the performance was mitigated by an improvement in trade volumes in the Americas and Australia that had increased 2.7 per cent on a like for like basis.
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Our take is that stock markets are in for a surprise once reality catches up with them.