CONTAINER shipping is to undergo a prolonged period of slower growth as manufacturing trends impact on long-haul trade demand and traditional transshipments, according to London's Drewry Maritime Research.
Manufacturing trends to limit annual container trade growth to 4pc CONTAINER shipping is to undergo a prolonged period of slower growth as manufacturing trends impact on long-haul trade demand and traditional transshipments, according to London's Drewry Maritime Research. The report forecasts global throughput growth of less than four per cent each year for the next five years at container ports, according to Lloyd's Loading List reported. "Structural changes such as near-shoring, 3D printing, miniaturisation, saturation of container penetration, and possible reduction in the use of transshipment are depressing the port growth forecast," said the analyst. Drewry's said leading global container terminal operators were now recording revenue increases due to inorganic growth rather than organic - as reflected by flat yield growth - and this was dampening forward earnings forecasts. This would prompt more consolidation activity in the container terminal operator sector, with liner-owned terminals in the spotlight for potential sales given that freight rates were near historical "cut-throat" levels. "Hyundai Merchant Maritime had done so in March, and we believe more liner-owned terminals will be available in the coming months," said Drewry. "Deep-pocket operators such as CMHI and Cosco Pacific are expected to expand their presence overseas, following the latter's May 2016 purchase of a 35 per cent stake in a Rotterdam terminal." said the report.