Sluggish growth dents global optimism

The Shanghai Shipping Institute (SISI) Global Ports Development Report 1Q15, reveals that year on year growth of global port throughput was only 1.8% in Q1, the lowest result for five years.

In addition, it shows that more and more ports are experiencing negative growth and a deeper slump, with the traditional larger ports being in short supply of growth momentum.

The report showed that except for Rotterdam, Tianjin and Hedland, no port over 100 million tonnes or above saw a 5% or higher year on year growth.

Tianjin benefitted hugely from the Integration Strategy of Beijing with the port attaining the highest growth in China in Q1, surpassing Qingdao at ranking No 4 in the top 20 throughput table.

A price drop in bulk cargo saw ports specialising in iron ore and other bulk cargo experience an uptrend however. Even with decreased import demand for China, Japan and South Korea, Australia’s Port of Hedland jumped to No 9 in the table due to surging growth of iron ore deliveries.

Q1 saw the European economy and trade continue to recover with increasing demand, but the stagnant US economy impacted on the growth of American ports. Moreover, strikes on the US west coast aggravated port congestion resulting in a plunge of the growth rate of American port throughput in Q1.

The outlook for Q2 is expected to remain the same with global trade and port production maintaining a slow pace.