Drewry: Mega-Alliances Could Help Transhipment Hubs

Image Courtesy: MPA Singapore

The world’s largest transhipment hubs are exposed to numerous risks, from poor underlying demand to increasing use of direct services, however, strong links to new mega-alliances that can guarantee capacity and smooth operations could provide opportunities as well as risks, according to shipping consultancy Drewry.

Throughput at Singapore after the first six months of 2016 was down by 5%, while further north Hong Kong fared even worse with a half-year decline of 10%.

Transhipment volumes account for around 85% of all Singapore’s container handling and a sizeable proportion of Hong Kong’s and some of their contraction is the consequence of market share shifts to other nearby hubs. Annual growth at Singapore and Hong Kong has lagged well below the world average since 2010, while other hubs such as Tanjung Pelepas and Port Kelang have grown above trend as more carriers and alliances have moved some transhipment activity there.

The ports’ customers, ocean carriers, are under financial pressure to reduce their operational costs and some of their actions have accelerated the shift towards more direct calls at the expense of transhipment. More previously feedered ports are being added to mainline services to save on feeder costs. The addition of more ports on to weekly loops has extended the round voyages of services, requiring additional ships to maintain the frequency, helping absorb surplus vessel capacity.

Increased demand and new terminal infrastructure in emerging markets such as Indonesia, Vietnam and Malaysia, has also helped to attract more direct services.

Having fewer but larger alliances poses another risk to all transhipment-heavy ports as it will reduce the client pool for terminal operators and will see business won and lost in much bigger “chunks”, according to Drewry.

However, Drewry added that the rise of the mega-alliances could actually be beneficial to larger transhipment ports where there is ample capacity to cater to increasing alliance-level volumes.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >