The pace at which port container capacity expands, is set to contract by 40% due to Covid-19.
According to the Global Container Terminal Operators Annual Review and Forecast, by global shipping consultancy Drewry, port capacity expansion is set to contract by 40% over the next five years due to the Coronavirus pandemic.
Global container terminal capacity, is projected to grow at an average annual rate of 2.1% over the next five years, according to Drewry, which equates to an additional 25 million teu a year, which is significantly below the average of 40 million teu, over the past decade.
Port throughput is projected to grow at an average annual rate of 3.5% over this period from 801 million teu in 2019 to reach 951 million teu by 2024. However, risks remain should a resurgence in COVID-19 cases cause further widespread economic lockdowns over the forecast period.
Eleanor Hadland, author of the report and Drewry’s senior analyst for ports and terminals said: “Our five-year forecast for global container port handling has been cut back drastically due to the COVID-19 pandemic, and the risks remain heavily weighted to the downside.”
As a result of the pandemic, operators and port authorities are actively reviewing delivery of planned projects in the light of the drastic slowdown in economic growth and uncertain short-to-medium-term outlook.