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Westports predicts 1-5pc box volume growth as alliances shift
MALAYSIAN port operator Westports Holdings anticipates container volume will increase between one and five per cent this year amid uncertainties over the port calls of the new mega shipping alliances.
By comparison container traffic rose 10 per cent in 2016 against the previous year to 10 million TEU.
The market situation is set to dramatically alter this year when the new alliances begin operations from April 1. Major long-term port user, CMA CGM, which is part of the Ocean Alliance, reportedly could shift some volumes to Singapore to boost its transpacific routes.
Meanwhile, UASC following its merger with Hapag-Lloyd, will become a member of THE Alliance. It is unknown how the realignment will affect UASC's port calls, reported Colchester's Seatrade Maritime News.
As of last year, CMA CGM and UASC contributed 3.5 million TEU and one million TEU respectively to Westports' total container volume of 9.95 million TEU.
'As for CMA CGM, we expect some volume to go to Singapore but Westports is still going to be one of its hubs in the region,' said Westports Holdings CEO Ruben Emir.
'And for UASC, we are still somewhat unsure how it is going to affect us until we obtain more clarity pending the completion of its merger with Hapag-Lloyd,' he said.
He added that the environment would become a lot clearer from the third quarter of this year. 'From my experience, when a new shipping alliance starts its services, it will take about 15 months to re-align and sort of predict the exact gain or loss of volume.
By comparison container traffic rose 10 per cent in 2016 against the previous year to 10 million TEU.
The market situation is set to dramatically alter this year when the new alliances begin operations from April 1. Major long-term port user, CMA CGM, which is part of the Ocean Alliance, reportedly could shift some volumes to Singapore to boost its transpacific routes.
Meanwhile, UASC following its merger with Hapag-Lloyd, will become a member of THE Alliance. It is unknown how the realignment will affect UASC's port calls, reported Colchester's Seatrade Maritime News.
As of last year, CMA CGM and UASC contributed 3.5 million TEU and one million TEU respectively to Westports' total container volume of 9.95 million TEU.
'As for CMA CGM, we expect some volume to go to Singapore but Westports is still going to be one of its hubs in the region,' said Westports Holdings CEO Ruben Emir.
'And for UASC, we are still somewhat unsure how it is going to affect us until we obtain more clarity pending the completion of its merger with Hapag-Lloyd,' he said.
He added that the environment would become a lot clearer from the third quarter of this year. 'From my experience, when a new shipping alliance starts its services, it will take about 15 months to re-align and sort of predict the exact gain or loss of volume.
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