Plenty To Think About

Thinning demand is further complicated by the ongoing shock waves from Russia’s aggressive actions in Ukraine and the ensuing spike in energy prices. This brings the once largely remote spectre of political risk into the forward planning equation, as discussed in the article Investment Risks Build. The wider uncertainties and industry specific factors are charted, as well as possible future scenarios in which port sector development activity will take place.

In a more specific context, the challenges regarding achieving a win : win in port and terminal development between public authorities and private sector terminal operators are considered in Market share versus profits. Focusing particularly on the next round of development activity in mature markets, where neighbouring ports serve over-lapping hinterlands, the conundrum is examined of how to reconcile the economic impact-orientated agenda of port landlords with the profit motive of terminal operators?

Adding further perspective on the container sector, in Market fundamentals turn we review the latest thoughts of market consultancy Drewry on the short-term outlook for container shipping. Strikingly, Drewry states: “There is a palpable sense that things are falling apart. “ Drewry cites the world lurching from a once-in-a century global health crisis straight into an economic crisis with barely a pause and suggests that with energy and food costs rampant, consumers are likely to prioritise basics.

There are, nevertheless, some rays of sunshine outside of the container sector. A series of articles in this issue look at various offshore wind markets. There is a tangible sense that ‘offshore wind is coming’ and, as part of this, significant opportunities for the port and terminal sector – in conjunction with both the set-up and ongoing maintenance of offshore wind farms. This includes the opportunity for secondary ports to get in on the act. The one question mark is, will there be adequate heavy lift shipping capacity available to meet market needs? This issue is highlighted in the article Tough Times for Multipurpose Vessel Market.

The end of 2022 leaves the global port industry with serious challenges looming and doubtless compounded by the recent elevation in interest rates. In short, plenty to think about and to factor into building a winning strategy.

Merry Xmas and safe navigation of 2023.