The latest port throughput figures reflect the disruption caused by various unexpected events that disrupted supply chains and caused congestion at key terminals around the globe, boosting shipping lines’ income, and making shippers wary of similar crises, reports container news.
Disruptive events
Disruptive events, including the pandemic and wars in Ukraine and the Middle East, not to mention the Ever Given blocking of Suez and drought affecting the Panama Canal have all contributed to the sometimes chaotic and volatile supply chains.
Eleanor Hadland, senior analyst – ports and terminals for Drewry Shipping Consultants, said that the industry has experienced a “rollercoaster” since the currency crisis of 2008, but that the last five years have been particularly volatile.
As a result of these changes shippers have sought to mitigate the worst effects of the latest major supply chain disruptions and to pre-empt the next event, namely the possible US East Coast strike, scheduled to begin on 1 October if a new contract is not agreed before that date.
Volume increases
Six of the top eight ports were Chinese, Singapore was second and Busan seventh, with first-half volume increases ranging between 4.4% at Guangzhou and 14.9% at Shenzhen.
Next on the list is the combined LA ports of Los Angeles and Long Beach, which also recorded a 14.7% increase in cargo volumes.
In part, Hadland argues that the US West Coast ports have seen a return of some cargo due to the threat of industrial action in the East, but with some “defensive shippers”, who moved cargo to the East Coast when dockers in California were negotiating a new contract, now reverting to the West Coast to avoid possible East Coast disruption.
Meanwhile, on the Asia-Europe trades Sri Lanka’s Colombo port, which had itself been hit by political and economic disturbances in 2022 and 2023, has been a significant beneficiary of the carrier diversions, recording a 12.5% according to Drewry in the first half of this year.
Speaking about the three hubs Wadey said: “Instead of carriers creating new and expensive services around the Cape of Good Hope to compensate for lost connectivity, it is just as easy to relay Middle East/Indian Subcontinent-Europe cargoes to regional hub ports, and then transhipping onto existing intercontinental services to Europe that will be passing by. “It is no coincidence that these three ports are predominantly hubs.”
Drewry said Mundra port volume increases of 11% in Q1 is a result of the booming Indian economy rather than the impact of the Middle East crisis.
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Source: Containernews
