Container slowdown small help to capacity crunch

Acknowledging that a significant shortage of global container terminal capacity relative to demand is still looming within the next few years, the analyst cites two factors that might ease the tightness in some regions.

Firstly, high level of investment by global terminal operators in container terminal infrastructure and equipment will “have a positive impact on the utilisation of terminal capacity over the next five to six years”, according to Drewry’s director – ports, Neil Davidson.

Then, the slowing of demand growth in locations such as the US and Europe will further release some of the building pressure.

But, cautions Mr Davidson, “there is no room for complacency. While there has been an improvement in the forecast outcome, more needs to be done to address the tight supply/demand balance that is likely to occur in certain parts of the world over the next few years.

“Even with the credit crunch, there is still a capacity crunch. That is evident now in places like the Middle East, South America, the Baltic, the Black Sea, India and Asia. And it will return to places like North America and Europe unless port operators keep their foot on the gas.”
Drewry’s Annual Review of Global Container Terminal Operators 2008 assesses the balance between the supply of container terminal capacity and demand from 2007 to 2013