CFO Christian Moller Laursen states that the port industry remains “fundamentally attractive” and calls for cooperation in the “new reality”.
APM Terminals Vice President and Chief Financial Officer Christian Moller Laursen emphasized the “new reality” of the global container transportation industry at the Port Finance International London conference, and the need for terminal operators and their shipping line customers to work together to succeed in this new environment of slower growth and reduced revenue.
“Our customers are bleeding, with no solution in sight” cautioned Laursen, citing the steep drop-off in the shipping industry’s container volumes and revenue and the idling of nearly 12% of the world’s container fleet during the past year’s global economic downturn.
The APM Terminals Global Terminal Network has not been immune from the negative effects of the 15% decline in global container throughput this year as compared with 2008, with the company’s container handling dropping by 9%, and terminal development projects reviewed, postponed, and in some cases, cancelled. The company remains profitable; however, due mainly to the cost saving measures taken to meet the crisis as it emerged in 2008. Recent economic indicators have suggested that recovery has begun, and the IMF and World Bank are projecting a return to modest expansion of global trade particularly in areas where APM Terminals has a strong presence. Unfortunately this recovery is not reflected in the throughput of the company’s terminals yet.
“Despite the slower growth in the coming period, the port industry remains fundamentally attractive” Laursen stated, adding “The world will continue to grow in the longer run, and globalization and the containerization of goods will continue, particularly in emerging markets.
The necessity to upgrade existing capacity, rising consumer demand among the economies of developing nations in Asia, Latin America, Africa and the Middle East and the increasing demand for containerized trade in new markets, including intra-Asia will continue to drive terminal capacity demand, but in a much more measured pace.
APM Terminals Calls for Recognition of “New Normal” in Global Container Traffic Growth Expectations
Nov 19, 2009 | Published in Issue
CFO Christian Moller Laursen states that the port industry remains “fundamentally attractive” and calls for cooperation in the “new reality”.
APM Terminals Vice President and Chief Financial Officer Christian Moller Laursen emphasized the “new reality” of the global container transportation industry at the Port Finance International London conference, and the need for terminal operators and their shipping line customers to work together to succeed in this new environment of slower growth and reduced revenue.
“Our customers are bleeding, with no solution in sight” cautioned Laursen, citing the steep drop-off in the shipping industry’s container volumes and revenue and the idling of nearly 12% of the world’s container fleet during the past year’s global economic downturn.
The APM Terminals Global Terminal Network has not been immune from the negative effects of the 15% decline in global container throughput this year as compared with 2008, with the company’s container handling dropping by 9%, and terminal development projects reviewed, postponed, and in some cases, cancelled. The company remains profitable; however, due mainly to the cost saving measures taken to meet the crisis as it emerged in 2008. Recent economic indicators have suggested that recovery has begun, and the IMF and World Bank are projecting a return to modest expansion of global trade particularly in areas where APM Terminals has a strong presence. Unfortunately this recovery is not reflected in the throughput of the company’s terminals yet.
“Despite the slower growth in the coming period, the port industry remains fundamentally attractive” Laursen stated, adding “The world will continue to grow in the longer run, and globalization and the containerization of goods will continue, particularly in emerging markets.
The necessity to upgrade existing capacity, rising consumer demand among the economies of developing nations in Asia, Latin America, Africa and the Middle East and the increasing demand for containerized trade in new markets, including intra-Asia will continue to drive terminal capacity demand, but in a much more measured pace.
