COVID-19: pronounced regional differences

This is according to the latest IAPH-WPSP Port Economic Impact Barometer report, published on 22 May, which sees ports in regions hit more recently with the pandemic suffer more than those in regions past the peak.

IAPH managing director, Patrick Verhoeven, commented: “Our WPSP COVID19 Task Force members have been giving us a unique insight into the shifting impact of the contagion on ports in different regions of the world. We now see Asian ports fully operational and with promising signs in terms of a recovery. European ports are gradually returning to the “new normal”, whereas ports in regions such as South America and Africa are having to adapt to the contagion which is in many cases now reaching a peak there.”

Blank sailings roundup

The report stated that blank sailings, mainly on trade routes with the Far East, are clearly affecting this week’s results for container vessels. About 45% of the ports are reporting that the number of container vessel calls fell by 5 to 25% compared to a normal situation (34% last week), while the share of ports facing a significant drop (in excess of 25%) in container vessels calls reaches 8%, a figure that is about 2 percent below the results of weeks 17, 18 and 20, but much higher than what we could observed in weeks 15 and 16. The share of ports reporting reductions in other cargo vessel calls of more than 25% increased further to 16% (vs. 12 to 15% throughout weeks 16 to 20). Less than half of the ports mention that the number of calls by other cargo vessels is rather stable compared to a normal situation.

North American spiral

In North America, the situation for container vessels calls has rapidly deteriorated in the past weeks. This week 71% of responding ports have witnessed a 5 to 25% reduction in container vessel calls, a figure that is much higher than the world average.

Nonetheless, some ports in Asia from the WPSP COVID19 Task Force are forecasting a recovery by the end of May and beginning of June in terms of container vessel liner services, which will have a corresponding positive knock-on impact between six to eight weeks later in regions such as Europe and North America.

Report co-author, Professor Theo Notteboom, commented: “We are starting to see some lines re-introduce sailings on the main East-West trades which they had previously shelved. We have also received reports from East Africa of a return of liner services out of Asia this week, which is a positive development.”