AS the world claws itself out of the worst economic downturn n several decades, Kingston Container Terminal (KCT) continues to see improvement in transshipment volumes handled at its port.

According to data released by the Port Authority of Jamaica (PAJ), transshipment cargo handled through its berth in the June quarter of 2010 was up 14 per cent over year-earlier levels and resembled levels observed at its peak in 2006.

Transshipment cargo actually didn’t decline in 2009, when the world was going through the worst of the economic recession, but was actually up during the June quarter of 2009 by 14 per cent over year-earlier levels, while for all of 2009 was up 3.5 per cent from the year before.

For the year to June 30, 2010, transshipment cargo volumes were up 7.6 per cent, showing that growth in the first quarter of 2010 was marginal.

The recovery in volumes does not reflect any new long-term contracts being inked between the managers of KCT and shipping lines but more derived from increased trade activity as the global economy rises out of the depths of the recession.

Prior to 2009, in 2007 volumes declined from 2006 peaks by 2.7 per cent before dropping 8.8 per cent in 2008 from year-earlier levels. But that fall-off surrounded drop in volumes associated with shipping line Maersk’s decision to stop using Kingston as its regional transshipment hub in late 2007.

The move was part of a reduction the Danish shipping line implemented on its weekly AC1 loop connecting ports in Japan, China and Korea with the Caribbean and Mexico.

Then, Maersk also dropped direct calls to Manzanillo in Panama and instead continued using Balboa, Panama, as a feeder hub to the Caribbean markets.

The PAJ subsequently pushed back the development of the Fort Augusta peninsula in 2009 to 2011, but blamed the recession as the cause. That plan was to include a large-scale freeport facility on the peninsula to provide assembling and duty-free shopping comparable to that which exists in Panama, and would have complemented plans to develop Port Royal as a major cruise ship destination to be interfaced with the Fort Augusta freeport.

One other factor contributing to the increase in transshipment activity at the Kingston port in recent months is the commencement of servicing new generation mega vessels — two of which were received in the June quarter.

Zim Antwerp docked in Kingston in February and April, while the 349-metre long MV Zim Rotterdam landed in June.

The vessels each have a capacity of 10,062 TEU (20-foot equivalent units).