24 October 2023 (Lloyd's List) - THE combined port authority of Antwerp-Bruges is putting a brave face on falling volumes and taking solace from the fact that it is not doing as badly as rivals.
Total port throughput of 204.4m tonnes in the first nine months of the year was down 6% compared with the same period last year, as the “still unstable geopolitical and economic conditions” prompt lower demand, particularly for container traffic.
“The eurozone economy is under pressure from interest rates, which have risen sharply,” the port said.
“Despite the drop in energy prices, the global economic situation also remains volatile and future indicators point to a continued economic downturn.”
As a result of this uncertain economic climate, containerised trade flows were falling around the world, it added.
For Antwerp-Bruges, this was reflected in a 6.8% fall in container throughput to 9.5m teu.
“Despite the decline in container throughput, Port of Antwerp-Bruges’ market share in the Hamburg-Le Havre range nevertheless grew by 1% point, to 30.6%, in the first half of this year,” the port said.
Other sectors saw even sharper falls, however. Conventional breakbulk was down 18.6%, although this put it back in line with pre-pandemic norms after a surge in the aftermath of the pandemic. With European steel production under pressure from high energy prices, steel, the biggest commodity in this segment, was down by 17.6%.
Dry bulk was down by 14.6%, as weak fertiliser demand hit volumes and coal throughput fell by a third.
Liquid bulks held up better as Antwerp-Bruges imported more fuel to replace Russian diesel, but demand for liquid chemicals and LNG fell sharply.
“The competitiveness of the chemical sector in Europe is under pressure due to high energy, raw materials and labour costs combined with low global demand,” the port said.
One of the few bright spots was a 18.5% surge in ro-ro cargo from Ireland, a Brexit bonus that stems from more direct sailings that avoid the land bridge across the UK. Direct UK traffic meanwhile fell 3.8%.
“The continued economic and geopolitical concerns have been visible in the figures for several quarters now,” said chief executive Jacques Vandermeiren.
“The competitiveness of European industry is under pressure due to high energy, raw materials and labour costs combined with low global demand. The indicators do not yet show any improvement for the near future, and container throughput will still be impacted in the fourth quarter by cancelled voyages from the Far East.
“Despite the fact that our throughput is falling less than the average in the Hamburg-Le Havre range and we are gaining market share, we will have to face the fact that 2023 will not be a top year.”
