Drewry: Pressure to ease on container terminal operator margins

An improving economic outlook and falling energy costs are expected to provide some reprieve to container terminal operator margins in the second half of the year, according to the latest analysis from Drewry.

Earnings have declined as slowing trade and escalating costs affected margins, while the easing of port congestion reduced average container dwell times at terminals and led to a corresponding fall in storage revenues in Q4 2022.

In their financial statements, both APM Terminals and Westports confirmed that their storage income has dropped back to 2020 levels, noted the analyst.