National Reserve Bank of Tonga

Lower private containers in October

Container Registrations  October 2017

The total container registrations declined over the month by 68 containers (6.2%) to 1,025 registrations. Container registrations remained higher than the average number of containers recorded in the same month of the past 5 years. This was largely due to private containers falling by 67 containers (13.1%). The number of business containers remained relatively stable over the month. Nonetheless, New Zealand continued to be the major originating source country for these containers, followed by Indonesia and Australia.

Total import payments (excluding oil) increased by $1.6 million (5.7%) over the month to a total $29.2 million. This was due to a $2.1 million (10.5%) rise in payments for wholesale and retail imported commodities. However, payments for construction materials and other imports such as medical and technological goods declined by $0.8 million (14.3%).

In year ended terms, the total container registrations rose by 1,563 registrations (15.3%), driven by a 956 (20.9%) rise in private containers indicating a rise in the informal distribution sector. Additionally, business containers rose over the year by 607 registrations (10.7%) which indicate a vibrant trade sector. The large number of events and celebrations held during the year, and the increase in private constructions supported this annual growth. In addition, 18 extra cargo ships arrived during the year to October 2017 compared to the previous year, which may have also supported the transportation sector. This was also consistent with a $31.9 million (11.0%) rise in import payments (excluding oil) as a result of higher import payments for wholesale & retail goods, miscellaneous goods (such as electrical infrastructure materials, medical, and technological goods), vehicles, and construction materials.

The Reserve Bank expects imports and consequently container registrations to generally increase in the near term. The Reserve Bank’s liaisons with the construction and transport sectors had indicated growing demand in these sectors which will also drive imports higher in the near future. On-going construction projects and new private residential constructions are anticipated to contribute to the rise. The opening of a new shopping centre scheduled for next month would also contribute to the anticipated increase in containers in the near term. Spill over effects on the trade, tourism, construction sectors and other sectors in the economy are also anticipated.

Resources

Container Registration - October 2017 Released on 28 December 2017 | 137 KB - Download a copy of the full report.

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