Skyrocketing operating costs and narrow profit margins due to the slowdown in trade. Terminal operators are having a tough time at the moment.
In its latest report, the consultancy firm, Drewry, points out that the reduced demand for containers and the drop in traffic has pushed terminal operators’ profits down. At the same time, higher costs (on the labour and energy front) incurred due to rising inflation have put accounts at risk, effectively eating away at every extra euro of earnings.
Making matters even worse is the easing of congestion problems. A phenomenon that had jammed up ports during the pandemic period, lengthening container dwell times in yards and reducing quayside operations but allowing terminal operators to make more profit from storage revenues.
Profits have shrunk dramatically. Overall, revenues are back to 2020 levels.
However, Drewry expects a recovery starting from the second half of 2023, when energy and fuel costs should begin to fall.
Translation by Giles Foster