NEWS
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WORLD NEWS ROUND-UP New environmental initiatives have been broadly welcomed by industry groups, although there are calls for governments to act on funding
bimco stays optimistic
Although many risks to the global economy and demand for bulk commodities remain, BIMCO is optimistic that demand growth in 2022 will match or not be far behind the organisation’s estimated supply growth. A potential rest-of-year increase in average tonne miles for coal and grains and a resurgence in China could add to demand. For 2023, BIMCO currently estimates higher demand growth as commodity prices and inflation are expected to moderate BIMCO’s Chief shipping analyst, Niels Rasmussen. In 2023, the supply/demand balance will be further assisted by decarbonisation regulation, which is likely to reduce average sailing speeds. BIMCO therefore expects the supply/demand balance to move in favour of owners, he says in an analysis of the market on BIMCO’s website. “In both years, a shift in congestion either up or downwards could have a major impact on market conditions. Risks to cargo demand are also plenty which, if they materialise, could lead to an adverse development in both the supply/ demand balance and rates and prices,” Rasmussen says. “A drop-off in grain shipments following the closure of Ukrainian ports and a low level of shipments into China has been a drain on demand, whereas a
renewed interest in coal in the European Union has provided new support. “Congestion has remained an issue and so far this year, more ships have consistently been stuck for longer than in 2021. This naturally adds inefficiency to the supply chain and reduces effective supply, thereby tightening the supply/ demand balance in favour of owners and operators.” Developments in China, which accounts for around 35% of global cargo demand, have been a concern following the strict implementation of a zero-covid policy leading to extended lockdowns. This has naturally caused a reduction in both activity and demand for coal and iron ore, Rasmussen says. Forecasts for GDP growth in China have been lowered for this year and next year, the analysis says.
uk ports call for funding
The UK ports sector has called on the government to supercharge the delivery of energy network infrastructure to ports with a new research and a transformational funding programme. Energy connectivity is a key enabler for ports if they are to act as hubs for the decarbonisation of freight transport on land and water. The call came as the sector’s trade associations, the British Ports Association and the UK Major Ports Group, released a summary
of data produced by The Centre for Economics and Business Research (CEBR) that demonstrates the huge positive impact ports have on boosting jobs and prosperity around the UK’s coast. CEBR’s report reveals that 125,000 people are employed in ports around the UK. These are highly productive and well-paid jobs – on average 51% more productive and 40% better paid than UK-wide averages. For each direct job in ports, there are more than six jobs created in wider supply chains and coastal communities. Such communities are all too often among the poorest in the UK. The sector contributes £10.8bn in value to the UK economy – more than air, rail, warehousing, and storage. This is underpinned by consistent high investment – port operators and their owners invest an average of £600m every year into their facilities and estates. This is on top of the crucial enabling role ports play for the whole economy as the gateways for 95% of UK global trade.
Energising the market
The European Sea Ports Organisation (ESPO) and the European Federation of Inland Ports (EFIP) study on the implications of the changing energy landscape on Europe’s ports was released and presented at ESPO’s Annual Conference in Valencia in June. The aim of the study is to draw a
BULK TERMINALS
international | SUMMER 2022
