Container Operators Face Perfect Storm
Global container terminal operators are changing gear – and strategies – as the nature of their market environment changes markedly due to slowing growth, bigger ships and larger liner alliances.
According to MANA, Drewry’s latest Global Container Terminal Operators Annual Review report shows that container terminal operators are rapidly changing their strategies in the face of a ‘perfect storm’ creating pressure on profit margins and rates of return due to:
• Significant softening of demand growth
• Higher opex and capex costs due to bigger ships
• Increased business risks from larger liner alliances
This year, 24 companies qualify as global/international terminal operators in the Drewry analyses, as listed in the above table. The nature of the list is already changing due to major M&A activity.
In particular, Cosco and China Shipping have merged, CMA CGM has acquired APL and APM Terminals has bought Grup TCB – all moves that at least in part can be seen as terminal operators mirroring the coming together of shipping lines in alliances.