Ports must lending a helping hand says Drewry

In its Annual Container Market Review & Forecast 2009/2010, the consultant states that the container market has “bottomed out” but warns that “any improvement needs to be set against serious over-capacity”.

The report’s editor Neil Dekker believes that all parties must pull together for the greater good of the container industry to overcome this.

“Carriers, owners, shippers, terminal operators, yards and banks need to work through this crisis together because all are now inextricably linked, having formed complex relationships concerning, in particular, credit and contractual lines for the financing and delivery of a huge backlog of ships,” said Mr Dekker. “This, apart from the recent decline in global container traffic, is at the very heart of the situation the industry faces.

“Additionally, many ports have invested heavily in new terminals based on the expected surge of cargo on ever larger post-Panamax tonnage and neither the ships nor the terminals facilities and extra capacity will be needed for several years,” he continues.

“Our view is still that all parties remain at threat and it will be a test of their resolve to adapt and to share some of the financial stress and responsibility for their mutual protection.”