High Shipping Costs Are Here to Stay Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Dubai-based DP World handled 47.5 million TEU across its global portfolio of container terminals during the first nine months of 2016, with gross container volumes growing 2.2% despite challenging market conditions.
The gross container volume on a like-for-like basis was up 1% during the period.
DP World says the growth was led by its European and Indian subcontinent terminals, which “continue to deliver robust performance.” Conditions in Australia and Latin American meanwhile continue to remain challenging. The UAE handled 11.1 million TEU, down 6.7% year-on-year due to a reduction in lower-margin transhipment cargo.
At a consolidated level, DP World terminals handled 21.9 million TEU during the first nine months of 2016, a 0.3% improvement in performance on a reported basis and down 2.3% year-on- year on a like-for-like basis, according to DP World.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented:
“Despite the challenging market conditions, particularly in natural resource dependent economies, our portfolio continues to deliver growth, which once again demonstrates the benefits of operating a globally diversified portfolio.
“While the near-term global trade growth outlook appears soft, we expect our new developments in Rotterdam (Netherlands), Nhava Sheva (India), London Gateway (United Kingdom) and Yarimca (Turkey) to drive growth in our portfolio.
“We will continue to maintain capital expenditure discipline by bringing on capacity in line with demand, while focusing on targeting higher margin cargo, improving efficiencies and managing costs to drive profitability. Given the performance in the first nine months, we are well placed to meet full year market expectations.”
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