Hong Kong

HONG KONG -- The global shipping industry is beginning to show signs of returning to profitability after suffering through one of its worst years ever in 2009. Falling exports and a glut of too many ships ordered during the boom years drove prices down to unsustainable levels on some routes, but the outlook is now improving for both the ports and the shipping companies.

Container traffic provides a window on trade patterns and the state of the global economy because it is the most closely tied to consumer demand. Six of the world's 10 busiest ports are located in China, when measured in terms of cargo shipped in standard containers, or TEUs (20-foot equivalent units).

In fact, Asia's exporting prowess is so dominant that Dubai and Rotterdam are the only two ports from outside the region to even make the list.

Since container shipping accounts for 52% of the total value of the world's seaborne trade, according to Lloyd's Maritime Intelligence Unit, Forbes used it to rank the world's busiest ports. Tankers make up 22%, general cargo 20% and dry-bulk commodities 6%.

China's exports returned to growth late last year after recording 13 months of declines during the financial crisis. The country's exports rose to $119.9 billion in April, a jump of 30.5% from a year earlier, while its imports surged 49.7% to 118.2 billion.

China Merchants Holdings, the country's largest publicly traded container port operator, said volumes this year may exceed 2008's level, according to a recent Bloomberg report. China Merchant's container throughput increased over 20% in the first four months of the year.

Macquarie selected China Merchants as its top pick of the China port sector with an "outperform" rating and raised its price target to 31 Hong Kong dollars ($4) from 21 Hong Kong dollars ($2.70). The Australian bank expects the recovery in exports to continue in 2010 supported by resilient North American and Intra-Asian volume.

China's resurgent economy and renewed demand for...