The shipping sector expects 5 to 8 percent global growth in both freight rates and trade volumes in 2010, according to Jun Ynion, CEO of ZIM Integrated Shipping Lines, the local unit of Israel-based ZIM Shipping Services the biggest cargo shipper in Israel and the tenth largest in the world.

After containership, bulk, and tankers significantly slowed down last year, “Ship owners are more optimistic today,” he noted. They feel this will be a good year for the container industry as well. However, “We are extremely cautious about balancing demand and supply so as to restore rates. Any wrong move can jeopardize the situation.”

So far, shipping companies have been implementing slow steaming, the CEO pointed out. They have modified their schedules in order to enable their vessels to slow down and reduce bunker cost. What started with a few carriers on the Far East-Europe trade Lane has new expanded to the pacific- USA and Europe - South America services.

Now, ships can do the average roundtrip from the Far East to Europe from 56 days to 63 days without losing their sailing frequency. Most shippers do not encounter problems with the longer transit time as long as the announced schedules are respected. Shippers are hopeful that slow steaming will also reduce the bunker surcharges.

Slow steaming absorbs excess capacity quicker than anticipated, especially for the larger vessels Ynion observed. The measure enables substantial fuel savings and significantly reduces CO2 and NOx emissions.

Furthermore, in the Philippines, the coming national elections should perk up businesses. “With the elections, I’m looking at more fiscal spending and increased investments in the region to stimulate growth. More importantly, the remittances from OFWs will continue to grow to boost the consumption locally,” Ynion explained.

Strong consumer demand and strong remittance from overseas Filipino workers have also boosted the domestic economy.

“Semiconductor and electronics were hit hard by competitors. Although the Philippines overall throughput has come down, the impact was minimal,” he noted.

ZIM offers 60 services to ports of call throughout Europe, the United States and Canada, Central and South America, Africa and Asia. It has established a strong presence on routes between the Far East and the Caribbean, Mediterranean and China.

Striving to meet the changing needs of a dynamic market, the company continuously expand and diversifies its geographic coverage. It is currently strengthening its presence in developing regions, with a focus on the Far East, Former Soviet Union regions, South America and Africa.