Plummeting China exports hits shipping volumes

China’s export industry is a vital part to its economy, contributing 40% of GDP. Custom bureau figures show that exports in May 2009 fell 26.4% from a year earlier, accelerating from April's 22.6% decline. Exports in the five months to May 2009 totalled US$426 billion, down 22%. The slump in exports underscores the dramatic downturn in the economy due to the global credit crunch, which has sapped Western consumer demand.

The severe decline in China's exports has led to an 11% year on year fall in overall container throughput in the first four months of 2009. Despite the plunge in shipping demand, Shanghai is charging ahead with plans initiated during boom times to more than double its capacity. China will also abolish export duties on some grains and industrial products and cut the duties for chemical fertilizers and nonferrous metals starting 1 July 2009 to boost exports.