logistics overview Global
Following a record level of cargo volume in 2022 (±5.4M metric tonnes), the Halifax Port Authority is tracking for decreased container throughput in 2023, with container throughput through Q3 down roughly 12.7% YTD. These headwinds were experienced across the entire sector, with all major North American Ports recording decreased container activity of 20.3%, higher than the Halifax decrease. Trade and supply chain activity began to stabilize in Q4 2023, and is expected to recover in 2024, particularly in hard-hit non-AI electronics. According to S&P Global’s Q1 2024 Supply Chain Outlook Report, physical operations present the biggest challenges for supply chains early in 2024, with climate change and conflict in the Middle East disrupting shipping networks. Further potential challenges include labour strikes, political uncertainty thanks to widespread elections, the rise of protectionism and retaliation, and more. Decision-makers can prepare for future problems by investing in resilience and agility, and the prospect of continued policy uncertainty in 2024 and into 2025 should mean reshoring strategies will remain attractive for the foreseeable future. Halifax offers a politically stable location for ocean logistics and distribution. Although transportation cost increase have settled somewhat since the pandemic, costs are still rising, and consistent and efficient supply chains are more important than ever. The top emerging markets globally are those with growing populations, superior hub connectivity, and the potential for onshore manufacturing to reduce shipping and freight costs. Maritime transport forms the most cost effective, energy-efficient, and dependable foundation of global trade. More than 80 percent of global merchandise is transported via sea transit. According to CBRE’s Supply Chain Advisory, Transportation costs make up 45%-70% of a company’s total logistics spend, while fixed facility costs account for only 3-6% of spend. Halifax Gate’s position as a hub for ocean, rail, and road transit as well as its size and scale to allow for nearshore manufacturing and large- scale industrial uses is why this is truly a one-of-a-kind opportunity.
Source: CBRE Research, S&P Global – Market Intelligence
Halifax Gate | pg. 20
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