Neil Davidson News

The outlook for global container port demand is modest growth and numerous uncertainties, but in the face of this, capacity expansion plans are also muted, said the global shipping consultancy Drewry."This means that most world regions will see an increase in average terminal utilisation," said Drewry in its Global Container Terminal Operators Annual Review and Forecast 2019.Drewry’s container port demand forecast for the next five years is for global growth of 4.4% per annum on average, lifting world container port throughput from 784 million teu in 2018 to 973 million teu by 2023, an absolute increase of almost 190 million teu.The…

The medium term outlook for global container port demand growth is positive thanks to strong underlying economic momentum across the world’s major economies. While there may be clouds on the horizon in the form of tariff and trade war fears, economic fundamentals are likely to win-out in the long run, according to the Global Container Terminal Operators Annual Review and Forecast 2018 by global shipping consultancy Drewry.Against this positive picture near term container port capacity expansion will remain relatively subdued following several years of under investment, particularly in greenfield projects. As a result, average utilisation…

The outlook for global container port demand growth is now more optimistic, and Chinese players are on the acquisition trail in an aggressive and highly confident manner, said a report from Drewry. Major M&A deals are changing the landscape, with more to come, according to the Global Container Terminal Operators Annual Report 2017, now in its 15th year of publication by global shipping consultancy Drewry. Drewry’s container port demand forecast is more positive than in last year’s report, exhibiting a 4 percent CAGR and adding a further 152 million teu of port throughput to the global total by 2021. This is a consequence of improved port throughput growth rates in the second half of 2016 and into 2017, and a more positive general global economic outlook.

In a ground-breaking analysis Drewry has examined the correlation between carrier terminal ownership and the choice of port calls by the 2M and upcoming Ocean and THE liner alliances. The results show that the choice of port call is often not in line with carrier terminal ownership interests, according to the recently launched Ports and Terminals Insight report published by global shipping consultancy Drewry. Drewry analysed the relationship between i) the extent of interests in terminals that carriers have in ports in a selection of gateway and transhipment port markets, and ii) the ports of call in these markets, as selected by the three major alliances that will be in place from second-quarter 2017.

Container shipping lines are in danger of putting future port investment at risk in their demands for terminal handling cost reductions, according to the recently launched Ports and Terminals Insight report published by global shipping consultancy Drewry. Terminal operators face a “perfect storm” of rising costs due to bigger ships, greater business risks from larger liner alliances, softening global demand growth and pressure on terminal handling prices from cash-strapped carriers. The financial results of listed port and terminal operators reveal a weakness in organic earnings amid escalating debt levels. Stricter cost rationalisation and financial risk reduction will be necessary to retain investment interest.

Softening demand growth coupled with larger liner shipping alliances and bigger ships is moving the container ports industry towards a value sector from growth sector, albeit still highly profitable, according to the Global Container Terminal Operators Annual Report 2016 published by global shipping consultancy Drewry. Global and international container terminal operators are faced with the dual challenges of weaker demand growth and rising operating and capital costs due to larger vessels and alliances. On the stock markets, ports are increasingly seen as a mature value sector rather than a growth sector. Global container port demand…

Rising global container port demand and ever larger vessels are driving terminal operators to make significant investments in additional capacity, according to the Global Container Terminal Operators Annual Report 2015 published by global shipping consultancy Drewry. Drewry predicts average global container port demand growth of 4.5 percent per annum through to 2019. This equates to an additional 168 million teu of port traffic, bringing the global total to nearly 850 million teu. Asia accounts for over 60 percent of the forecast global demand growth.

Tomorrow 23rd June international law firm Hill Dickinson LLP will be holding  its UK Ports Conference focusing on ‘The Future of UK Ports: changing regulation, shipping trend updates and new opportunities in the supply chain’. The 7th Annual UK Ports Conference will allow senior representatives from across the ports, shipping and maritime sector to network and discuss policy updates, shipping trends and the latest logistics and supply chain guidance. The day will also look at how to approach port development and funding and hear from UK ports on how ports can support the economic development of the local area and the wider UK. Another discussion point will be on EU state aid and the key risk factors are for UK ports.

Drewry inform that the 2014 edition of their Annual Review of Global Container Terminal Operators is now available to purchase online. Drewry add that this industry review, with forecasts, has some of the most insightful and detailed analysis available in the market today. Entering its 12th year of publication the report is unmatched by others and Drewry continue to enhance and add new content each year. Global container port throughput will exceed 840 million teu by 2018, with the fastest growing regions projected to be Africa and Greater China. This represents an average annual growth rate of 5.6% over the next five years, an improvement on the 3.4% recorded last year. The overall growth in trade will boost average terminal utilisation from 67% today to 75% in 2018.

Drewry’s latest annual report on global and international container terminal operators shows that the sector remains dynamic and profitable, but that numerous changes are also taking place. All terminal operators face the challenge of growth on two fronts – growth in container demand and growth in ship sizes. Whilst it is generally agreed that future container demand growth will not be as strong as the boom periods of the 1990s and 2000s, global container port demand is still forecast to exceed 800 million teu p.a. by 2017, growing by just over 5% p.a. To put this growth into context, the 186 million teu which this growth represents is the equivalent of the entire throughput of all Chinese ports in 2012.

Measured by equity TEU, there is no change in the order & ranking of the top five international container terminal operators. PSA (Port of Singapore Authority) was again the leading operator in terms of equity TEU ahead of Hutchison (HPH), but by a much reduced margin following the divestment by PSA of its interests in HPH’s Hong Kong terminals. There is now a difference of only just over 4 million TEU in Drewry’s assessment of PSA and HPH’s equity TEU throughput. DP World and APM Terminals are closely matched in third and fourth spots whilst the COSCO Group’s throughput remains somewhat less than that of the top 4 players. The big four global operators collectively accounted for 26.5% of world container port throughput…

Drewry Maritime Research’s latest Annual Review of Global Container Terminal Operators report shows that whilst some things have remained the same, others have changed significantly with more change to come. Measured by equity teu, there is no change in the order and ranking of the top five operators. PSA was again the leading operator in terms of equity teu ahead of Hutchison (HPH), but by a much reduced margin following the divestment by PSA of its interests in HPH’s Hong Kong terminals. There is now a difference of only just over 4 million teu in Drewry’s assessment of PSA and HPH’s equity teu throughput. DP World and APM Terminals are closely matched in third and fourth spots whilst the COSCO Group’s throughput remains somewhat less than that of the top 4 players.

In this year’s "Global Container Terminal Operators" annual report, Drewry Maritime Research has introduced an additional ranking of terminal operators which includes SIPG, China Merchants, Modern Terminals and Ports America in the Top 10. The Drewry World Container Terminal Ownership Ranking has been derived by including all companies with equity teu of more than one million teu in 2010, regardless of whether they operate internationally or not. In total, this encompasses 65 firms and organizations, ranging from the established international operators to state-owned port authorities, financial investors and large local players. Neil Davidson…