Industry insiders say that Chinese shipping companies - unlike air carriers - have felt little impact since the attacks.

Xiao Liangyong, spokesman with the transport department of China Ocean Shipping Company (COSCO), said the company had several ships delayed around the port of New York on the day of the tragedy.

He said that, until now, no direct loss was reported, except that the number of ships to the east coast of the US, and states such as New York and New Jersey in particular, dropped.

"We are already feeling the effects," Xiao said, "but no data collection of loss has been done."

COSCO is the country's largest container carrier.

The shipping index of the Shanghai Stock Exchange also inched up between September 17 and 24, indicating that the Chinese shipping industry remained stable after the tragedy.

Xiao said that, although the immediate impact proved limited, the fallout of the attacks on China's shipping industry remained uncertain as reactions were relatively sluggish. But he declined to comment whether any impact would be lasting.

Experts, such as Song Binliang with Shanghai Maritime University, echoed Xiao's words. Frail US consumer confidence will likely result in falling demand for imported consumer goods, which China mainly shipped to the country. China might see a drop in shipping business, Song told Business Weekly.

In fact, the Chinese ocean shipping industry has dropped from the first quarter of this year as the economy of the United States - China's second largest shipping destination - began to slow down.

Official figures showed that major ports in China handled 450 million tons of cargo in foreign trade last year, about 56 per cent of which was shipped to the North and South American markets.

Sources at Guangzhou in South China's Guangdong Province revealed that more than one-third of cargo which the port handles annually is destined for the United States. And a US survey also showed that half of the current containers from Asia to the US came from Chinese ports (including Hong Kong). But shipping volume to the US began to decrease from the second quarter of this year.

Fears are growing in the aftermath of the September 11 terrorist attacks that the weakening US economy could skid into recession, which would make the situation for China's exports even tougher, according to Song.

China's deputy trade minister also said he expected the attacks would lead to a fall in Chinese exports to the country.

Apart from damaged US consumer confidence, Song also said the increasing costs of China's shipping companies might cause a reduction in trans-ocean shipping. Uncertainties over oil prices and war-risk surcharges imposed on the companies would seriously impact on the costs of ocean shipping.

"With the consideration of safety and the higher costs and risks, it is likely shipping companies will shift their business strategy to focus more on the domestic market," Song said.

However, other experts argued that Chinese shipping companies might increase the number of ships heading to Europe to make up for their companies' reduction in US business. They do not believe local shipping companies will reduce their business.

But some analysts said many ship owners would still pin hopes on shipping goods to the US in the remaining months of the year and around the Christmas sales season in particular.