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If Gatwick’s plan to bring its Northern Runway into routine use is realised, the volume of cargo handled by it could increase to Containerlines set for ‘eyewatering’ earnings Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
around 350,000 tonnes per year by 2047 — up from 150,000 tonnes in 2019-20. This would be driven primarily by the expected growth in long-haul connectivity, with widebody aircraft to destinations in Asia and the Middle East being used by the additional runway. ON THE QUAYSIDE A new 11.5 acre storage park for empty containers at the port of Southampton will be able to hold additional empty containers to meet customers’ requirements, a critical factor in keeping supply chains moving when dwell times at terminals across the UK have increased, says the port’s owner DP World. The storage park will add 25% more storage capacity for empty containers. DP World has begun work on a new fourth berth at its London Gateway logistics hub to increase supply chain resilience and create more capacity for the world’s largest vessels. IN BUSINESS With careers in logistics not always receiving the most positive press, it is heartening to hear that the logistics sector is among the best at retaining workers. Statistics for 2015-2021, presented by Totaljobs, indicate that 49% of those logistics workers surveyed have remained in the sector, with each spending an average of 10.1 years in the industry and 7.2 years with the same employer. International Cargo Handling Coordination Association (ICHCA) and the International Vessel Operators Dangerous Goods Association (IVODGA) have signed a Memorandum of Understanding (MOU) to assist the dissemination of effective guidance on the correct safety procedures that need to be employed on container packing and declaration.
ON THE OCEAN Shipping consultant Drewry has revised its full year forecasts for the combined liner community. It is now suggesting that the world’s containerlines are on course to post “eye-watering” earnings before interest and tax (EBIT) of USD150 billion, at least five times previous all-time records for the sector. Sale and purchase activity in the containership market declined sharply in the third quarter but prices remain on a rising trend, with owners chasing a smaller pool of available assets. Alphaliner reported that sales volumes fell sharply in the July-September period, with ‘just’ 103 ships of 380,000 teu sold – a significant drop from the 170 ships of 625,000 teu that changed hands in the second quarter. The maritime supply chain disruptions will not normalise before the end of 2022, according to the latest Container Forecaster report published by Drewry in early October. The analyst expects fleet growth will continue to lag behind demand growth this and next year, but the discrepancy will be eased from 2023 onwards when the orders for newbuild vessels come on to the market. The huge increase in container shipping asset values has given investors a rare opportunity to leave the market on a high and with box shipping set to return to normal at
warehouse space in Q3 2021 totalled 15.7 million sq ft, bringing the total amount of space leased this year to 46.9 million sq ft. That is 27% above the Q1-Q3 2020 total and puts the UK industrial and logistics sector on course for a record year as the unprecedented levels of occupier demand look set to ensure that the industry will beat the 51.6 million sq ft of space taken in 2020. IN THE AIR IATA has urged the air cargo industry to continue working together at the same pace, with the same levels of cooperation as during the COVID-19 pandemic to overcome future challenges and build industry resilience. Presenting at the 14th World Cargo Symposium (WCS) in mid-October, it said that sustainability, modernisation and safety are key priorities. Air cargo load factors increased to 68% during the final week of September, surpassing pre-COVID- 19 load factors during even peak season. At the same time, available capacity remained down by more
than 10% from 2019 levels, while chargeable weight was virtually flat, according to the latest analysis from Clive Data Services, released in early October. Media reports suggest that Boeing is poised to introduce an airfreight- only version of its 777X jetliner this month ahead of the passenger version, its first new jet in four years. The move will intensify its fight with Airbus (which is marketing a freighter based on its A350-1000 jet) for supremacy in an aviation segment that is flourishing as sales of passenger jets limp through the COVID-19 pandemic. IATA says the air cargo market is soaring this year and 2022 is looking even better. It estimates that cargo volume for airlines will grow 7.9% in 2021 compared with 2019, and that demand will heat up to 13.2% above pre-pandemic levels next year. Cargo revenues are expected to reach a record US$175 billion in 2021, an upward revision of US$23 billion from April, and stay near that level at US$169 billion in 2022 as cargo yields soften from 15% to 7% growth.
some point, there is little opportunity for speculative acquisitions, analysts say.
IN THE WAREHOUSE Knight Frank’s preliminary data shows that take-up of UK
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November 2021
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