Three months into 2024 and story of geo-political instability continues.
The latest element of this being Iran’s missile attack on Israel, cited as a defensive measure but clearly with a lot of potential to escalate into something larger.
Ironically, to a certain extent these exceptional events, due to vessel diversion etc, are providing some revenue relief to container liner operators who are struggling against the harsh realities of self-induced over-capacity versus demand. How quickly, the thought springs to mind, the old normal has become the new normal – cycles repeat themselves!
The economic picture is mixed, as highlighted by The Economist column. This said, reducing inflation and the end of interest rate hiking cycles in most economies are positives to hang on to. Hopefully, further stability will follow once the current spate of pending elections is over, although, looking at the USA in particular, it could go the other way.
Exceptional events are of course not all geo-political, as highlighted by the most unfortunate collision between the M/S Dali, on charter to Maersk, and Baltimore’s Francis Scott Key Bridge. While this appears to have resulted from a propulsion issue (although yet to be officially announced) the incident has no doubt given a lot of food for thought to the many ports like New Orleans and Melbourne which operate with bridges with air draft limits which can present fine margins with some of the larger vessels deployed today.
I would also suggest that the USA’s determination that it might be at risk in a security context from Chinese made cranes is something of an exceptional event. We look at this in Postscript and question whether the idea of replacing existing cranes with home built/assembled units will stack-up? Practicalities suggest otherwise.
In a more heartening context, I would also draw your attention to the articles focusing on Southeast Asia in this issue, Investing in Transshipment and the following Indonesia story – both underline a commitment to serious ongoing investment.
Last but by no means least, do read the review of the Safe Mooring Seminar organised jointly by Through Transport Club and Port Strategy and held in London at the end of March. This threw a much-needed spotlight on a subject area where there is considerable scope to maximise safety and efficiency. It is certainly an aspect of port and terminal operations that will benefit from greater dialogue between all interested parties.
