Drewry: Future port investment under threat

Container shipping lines are endangering future port investment by demanding cuts to terminal handling fees according to a new report by shipping analyst Drewry.

According to its ‘Ports and Terminals Insight’, terminal operators face a “perfect storm” of rising costs due to bigger ships, greater business risks from larger liner alliances, softening global demand growth and pressure on terminal handling prices from cash-strapped carriers.

Drewry’s senior analyst for ports and terminals Neil Davidson stated: “Shipping lines need to be careful how they play the situation. If the returns from investing in and operating terminals fall too far, or the risks become too high (or both), then terminal operators may simply stop investing.”