The Port And Shipping Industry Revives

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Mfame Editor
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  • port and shipping industry expects cargo volume growth as manufacturing activities increase
  • the global economy is set to expand 5.6 percent this year, the strongest post-recession pace in 80 years
  • volumes, when compared to last year, is high and there is only a small difference when compared to the pre-pandemic level
  • cargo volume handled by the country’s ports increased by 18.7 percent year on year (YoY)
  • revenue from logistics and other services increased 7% YoY due to growth from 2GO’s specialized reefer

The Port and shipping industry expects cargo volume growth as manufacturing activities increase and major economies made sharp rebounds. International shipping lines see a slow but stable recovery in the remaining months of the year, as the demand for shipping increases and freight rates are high says an article in Manila Times.

Global economy to expand 5.6%

According to World Bank, the global economy is set to expand 5.6 percent this year, the strongest post-recession pace in 80 years. The recovery is uneven and largely reflects sharp rebounds in some major economies. Moody’s Analytics forecasts the Philippines’ gross domestic product (GDP) growth at 4 percent in 2021.

Congestion may take time to clear

Congestion still happens in some of the major ports in the world and it will take some time to clear. “It has resulted in ships not being able to keep their regular schedules. When ships do not arrive on time to pick up containers, it will have a domino effect as manufacturers’ goods are kept in store for a longer period.”

Increasing cargo volume

In the first half of the year, cargo volume handled by the country’s ports increased by 18.7 percent YoY, according to the Philippine Ports Authority. The International Container Terminal Services Inc. saw an increase in volume primarily due to improvement in trade activities as economies continue to recover from the impact of the pandemic and lockdown restrictions.

Positive outlook

Revenue from logistics and other services increased 7% YoY due to growth from 2GO’s specialized reefer and ISO tank containers and international courier businesses. 2GO primarily operates roll-on/roll-off freight and passenger vessels.

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Source: Manila Times