Positive news, but changes ahead

Drewry’s Annual Market Review & Forecast notes: “In a nutshell, container trade is recovering well on the major routes, although some doubts remain about the short to mid term. Consumption levels and buying patterns have changed making it difficult for importers to match forward inventory to sales.”

However, editor Neil Dekker explains that while lay-ups and slow steaming have fixed some of the carrier’s financial problems of last year, “the environment is very different and shippers have more difficult challenges ahead of them”. He added that there is a need for thinking creatively to provide some much needed security in the supply chain.

This obviously impacts ports, and would seem to favour those who can entrench themselves in supply chain solutions.

Mr Dekker concluded that although back into profit, “the operating environment is different with an emphasis on maintaining profitability rather than market share”. He added, port and infrastructure plans are being revitalised as investment is being attracted back into the industry, but it’s still a difficult scenario, as to maintain the current positive sentiment, “all industry stakeholders need to be disciplined and to find ways to work together to share costs and information”.

Mr Dekker told Port Strategy: “Investments in a number of port developments have been put on ice in the last 18 months and our mid-to long term view is that cargo traffic will certainly exceed available port capacity by 2015 as we continue to emerge from the recession.” Drewry’s global container forecast is for 10.9% growth this year.

He added: “We have already had a taster of isolated port congestion coming back this year and it is evident that some of these port plans will need to be kick-started soon. Potential hotspots could be in Asia, eastern Europe, the Middle East and the east coast of South America. Indicators point to the fact that volumes to these emerging regions will outpace those experienced in the mature east-west trade routes.”