The global economy seems to be entering another era of uncertainty and is becoming more protectionist, to the dislike of the port industry. People in the United Kingdom have decided to leave the European Union, and the next US president, Donad Trump, appears not to favor a free trade agreement represented by the Trans-Pacific Partnership, where trade barriers would be lowered substantially among 12 participating economies in the Pacific Rim region.
The global economy expanded partly because of globalism and low-barrier international trade, but now it is going the opposite way. In addition, the Chinese economy is slowing down, so the demand for raw materials has been shrinking, with their prices and trading volumes decreasing.
This caused critical problems for countries that depend on exporting raw materials and most shipping companies, as well. In order to survive this difficult time, some carriers have formed stronger alliances and are continuing to launch bigger ships in the market, which may result in rearranging ports of call, putting more emphasis on transport efficiency. So, ports have to show they are competent to remain in the market.
Global warming has also required us to prepare for and respond to changes in climate or their environment. On the security front, ports could be among the list of potential targets for global terrorism, and, therefore, even tighter security measures must be taken.
IAPH will meet in Bali, Indonesia, in May for the 30th IAPH World Ports Conference under the theme of “Enabling Trade — Energizing the World.” Major port players will assemble from across the world to address a number of critical issues as mentioned above.