The Week-16 results of the IAPH-WPSP Weekly Port Economic Impact Barometer show COVID-19 crisis has 35% of ports reporting an increase in the utilization of warehousing and distribution facilities in the last week for foodstuffs and medical supplies, whilst other ports report both over- and under-utilization of their storage facilities, depending on cargo type.
The second weekly results of the World Ports Sustainability Programme’s (WPSP) Port Economic Impact Barometer have been published at the World Ports COVID19 Information Portal, following the response of 90 ports from all over the globe.
Compiled by PortEconomics members Professor Theo Notteboom (Shanghai Maritime University, Ghent University and University of Antwerp) and Professor Thanos Pallis (University of the Aegean and Universidad de Los Andes), ports reported for a second week, answering six key questions.
A mixed picture – over-utilization in some ports with under-utilization in others
35% of ports report an increase in the utilization of warehousing and distribution facilities for foodstuffs and medical supplies, with some ports reporting capacity shortages. Last week these figures were slightly different with more ports reporting a major increase in utilization levels (10% then vs. 2% this week) and with fewer ports reporting a minor under-utilization (10% then vs. 5% this week). The situation for consumer goods has almost remained the same, although there is an increase in the share of ports dealing with major increases in utilization or facing capacity shortages (11% now vs. 8% last week). In the dry and liquid bulk markets, almost two-thirds of the respondents see no changes in utilization levels. The remaining ports are fairly evenly distributed between under-utilization and increased utilisation of storage facilities.
Several ports report an increase in port and terminal utilization due to an increase in the imports of essential goods, such as grains (rice, wheat). Stockpiling practices of importers have also emerged and as a result, a major increase in capacity utilization for these deliverables is not uncommon. Other ports reported strategic storage of liquid bulks by traders in anticipation of future commodity price developments. The most critical situation recorded is for the automotive industry. As dealers fail to collect their new cars (due to a collapse in sale), overcrowding of relevant storage areas near some quaysides has been reported.
“In the coming weeks we foresee major changes taking place in cargo flows as we begin to see the impact of blank sailings, especially in the container shipping sector on the main Asia-Europe and Transpacific trades. This will cascade into other trade lanes as well, so its vitally important for us to view the overall impact on port calls, operations, restrictions, port staffing, hinterland transportation, and storage as well as future prospects for international trade to and from ports. – Theo Notteboom, IAPH-WPSP Port Economic Impact Barometer co-author”
“Vessel calls, utilization of warehousing and distribution factories, and connections to hinterland have been affected in many different ways. Workforce practices and procedures have changed. The growing interest of ports has allowed to further detail the exact trend, and we are looking forward to reporting the conditions of many more in the next edition of the barometer – Thanos Pallis, IAPH-WPSP Port Economic Impact Barometer co-author “.
“We are pleased the report has attracted interest from around the world, with three regional port associations assisting us in getting more ports on board with their anonymous answers to six simple questions. In addition, we have engaged with a senior representation of the Transport Division of the World Bank on a conference call to discuss knowledge sharing and cooperation” IAPH Managing Director Patrick Verhoeven
