"Intra-Asia trade will be the focal point of container shipping industry in the future," Bronson Hsieh, the chairman of the world's fourth-largest container line, told The Journal of Commerce's Trans-Pacific Maritime Asia Conference in Shenzhen on Tuesday.

He said the intra-Asia market will continue to benefit from further liberalization of regional trade and the recovery of the global economy. But he warned that the ASEAN countries must invest in expanding their port infrastructures in order to benefit from the expanding trade.

"Boosted by the expansion of China's domestic market, intra-Asia trade was able to reduce the impact of an economic recession. So, in contrast to the severe decline in most trade lanes, the intra-Asia market was able to maintain a high degree of stability throughout the global financial storm," Hsieh said.

The Asian market this year has also been boosted by regional free trade development under ASEAN and is showing strong growth. The economic growth of ASEAN countries will raise the income of their consumers and increase the demand for the manufactured goods to improve their standard of living. .

"For China's export industries, it provides a growth opportunity to make up for the slower demand in the U.S. and Europe," Hsieh said.

Intra-Asia cargo volume decreased 2.6 percent in 2009, but during the first half of this year, cargo volume increased 16.9 percent. The performances of both periods outstripped the long-haul markets from Asia to the U.S. and Europe.

Hsieh said the fleet of very large containerships is expected to increase to 335 ships with an estimated 200 more expected to join the market by the end of 2013.

Previously, vessel sizes utilized in the intra-Asia services were limited to about 3,000 20-foot equivalent units due to the capacity of ports and terminals in Southeast Asia. But excluding the Far-East legs of long-haul services, Panamax vessels are being deployed to six intra-Asia loops. "With the investment in expansion of terminals in ASEAN countries, the fleet size of ships will continue to increase," Hsieh said.

This year the cargo growth and capacity increases in intra-Asia trade lanes were responsible for port congestion in Vietnam, the Philippines and Indonesia. Those situations highlighted the shortage of terminal capacity in these countries. To secure the benefits of free trade agreements, many ASEAN nations are prioritizing the improvement of port facilities and expanded terminal capacity.

"Modern ports are more than gateways for marine transport. They are also an important link in the global supply chain. If terminal capacity does not keep up with increased vessel tonnage, it will negatively impact the efficiency of cargo movements, increase storage costs and raise the uncertainty of logistics management," Hsieh said. The result would be the decline in carrier competitiveness and ultimately, plans for investment. "If a country wants to promote foreign trade, therefore, it is imperative that the efficiency of terminal operations be a priority," he said.