The year 2012 will be characterized by uncertainty. Although volume has increased substantially since the crisis in 2009, the potential macro risks related to Europe and continuing malaise in the U.S. economy remain high. The significant effects the latest crisis is having on shipping lines’ balance sheets raises questions for the future — in terms of the increased possibility of carrier consolidation, a renewed round of vessel lay-ups, as well as potential changes in cooperation between shipping lines. From a terminal operator’s perspective, the difficult market environment for our customers presents challenges but also some opportunity.
Additionally, we are beginning to see lines preparing for the effects of cascading larger tonnage into the U.S. and Latin American trade lanes. Meeting the new infrastructure demands posed by larger tonnage will require agility and the engagement of all maritime stakeholders. Infrastructure and trade developments related to the widening of the Panama Canal remain uncertain.
Costs and productivity must remain top priorities. Key U.S. ports continue to trail global standards in both of these areas. There will be an opportunity to address these priorities during the upcoming contract negotiations with the International Longshoremen’s Association, where the continued rise in benefits costs has become unsustainable and the need for improved productivity and efficiency is long overdue.