European ports are facing multiple challenges 17/07/22

A COMBINATION of congestion and geopolitics, combined with a slowing macroeconomic outlook and labour disruption is putting pressure on Europe’s container ports.

The newly combined port of Antwerp-Bruges saw box volumes slide by 6.2% to 6.7m teu during the first six months of the year as disrupted schedules, vessel delays and high import volumes led to operational challenges.

Container volumes related to Russia were down 39% on the back of sanctions following the incursion into Ukraine.

Overall throughput at the multipurpose port were up 1.4% compared to the corresponding period of 2021, with growth in ro-ro traffic and dry and liquid bulk, but these too were affected by changing trade patterns. Fertiliser imports, for example, were down over 15% due to the Russia sanctions, but liquefied natural gas imports were up by 55% as European nations sought to replenish gas supplies ahead of the northern winter.

“Given the current geopolitical and macroeconomic context, this slight growth is definitely a relief,” said Antwerp-Bruge chief executive Jacques Vandermeiren. “The context continues to pose significant challenges, especially in the container segment. Thanks to the merger, we can now offer two complementary platforms as a unified port, significantly strengthening our position in the international logistics chain and as one of the main gateways to Europe.”

In Valencia, container volumes were also down, driven mainly by diversions of transhipment cargoes due to congestion.

Despite a 9% increase in laden imports, the total volume in the first half of 2.6m teu also reflected an 11.5% fall in transhipment.

“In the first half of the year, the economic situation still shows a negative result both in total freight traffic with a decrease of 2.37% and containers, with a drop of 6.46%,” the Port Authority of Valencia said. “The global uncertainty generated by the war in Ukraine, the rise in fuel prices, the high prices of raw materials and inflation are all affecting exports in the majority of sectors.”

It added that a reduction in congestion in China and on the US west coast could lead to further increases in traffic at Valencia.

In Germany, container terminals are preparing for disruption after the latest round of negotiations over pay rates between trade union ver.di and the Central Association of German Seaport Companies failed to reach an agreement.

A 48-hour strike began this morning that has seen workers down tools at Hamburg and Bremerhaven.

Maersk’s Hamburg Süd division warned customers that it had decided to observe “a full stoppage for rail, road and ocean freight for both import and export across our German terminals for the duration of the planned strike”.

Source: Lloyd's List