Carrier Consolidation Turns Up the Heat on APM Terminals
The ongoing consolidation of container carriers through acquisitions and alliances continues to exert pressure on terminal operators, according to APM Terminals.
Namely, following the formation of THE and Ocean Alliance Maersk’s terminal operator lost some liner services, MANA correspondent reported.
Fewer liner services and accompanying rate pressure also hurt the company’s revenue that totaled USD 989 million, down from last year’s USD 1.1 billion.
The overall overcapacity, as well as continued low import volumes and adverse currency developments in oil dependent markets, were also listed as factors contributing to the company’s poor financial results.
APM Terminals posted a loss of USD 100 million in the second quarter of 2017 amid impairments of USD 250 million from some of its financially troubled terminals.
However, the company said that volumes were boosted by the slot purchase agreements signed in Q1 with HMM and Hamburg Süd which give them access to certain services on the 2M network.
During the quarter, APM Terminals completed 18 agreements for new volume while five existing agreements discontinued during 2017.
For the remainder of 2017, the port operator believes in the growth recovery in global container traffic. Drewry’s forecast for global port throughput growth is 4.0% for Q2 2017 and 4.1% for the full year 2017, with a positive and higher growth forecast in almost all regions compared to 2016.
Strong improvements are expected in Latin America, where growth is set to increase from negative 1.6% to positive 4.1%, and West Africa with growth forecast up from negative 4.9% to positive 2.0%, the company said.