2014 was a stellar year for most North American East Coast container ports. That Europe finally returned to positive growth in 2014 is good news for East Coast ports and offers a bright outlook for 2015, especially for Canadian ports getting ready for the much-awaited Canada-EU free trade agreement, expected to come into force in 2016.
In addition, the U.S. economy is clearly showing robust signs of recovery. On the downside, emerging markets under-performed in 2014, a situation expected to spill over into 2015. Finally, East Coast ports have owed part of their growth to cargo rerouting from labor unrest affecting the U.S. West Coast, a situation that will likely impact 2015 as well at the eve of the Chinese New Year period.
The recent launch of the CSCL Globe, the largest container ship in the world, has yet again pushed the limits of shipbuilding. If 2014 was a year of “mega” proportions — with mega-alliances including the failed P3 Network, CKYHE, the Hapag-Lloyd-CSAV merger, 2M and Ocean Three allowing carriers to further deploy mega-ships — 2015 may well announce a new chapter of “mega-congestion” for ports.
Congestion surcharges are now a reality shippers must face, but will they become the new normal in 2015? There is no doubt such ships will put increasing landside pressure on ports, rail and road networks. Port congestion is already visible on all major port ranges: from Singapore literally moving its entire port and building 65 million TEUs of greenfield capacity, to labor relation uncertainty on the West Coast, and to ship schedule reliability issues at European ports. Innovation will definitely be key in facing these challenges in the coming years.
Sylvie Vachon, President and CEO, Montreal Port Authority