Changes in the Shipping Industry from the Changes in the Port of Rotterdam's Throughput

Allard Castelein, CEO of the Port of Rotterdam Authority, said: “Total cargo throughput makes business at the port look business-as-usual, but the performance of LNG and coal shows a dramatic change in the energy landscape. With high energy prices, energy The intensive chemical industry is going through tough times. In the long term, a faster energy transition reduces our reliance on geopolitical developments. In the short term, we must do everything we can to preserve the chemical industry, which is extremely important to society."

dry bulk

Throughput of iron ore and scrap cargo fell sharply by 17.9%, as did agricultural cargo throughput by 14.8%. The former is due to a weak economy, while the latter is based on harvest volumes around the world. High energy prices also play a role in the processing of agricultural products. Coal freight volumes rose 24.8%, mainly due to the use of more coal in power plants. Other dry bulks, such as raw materials and construction materials, also surged 22.6%. Total dry bulk throughput increased by 2.9%.

liquid bulk

Total liquid bulk throughput increased by 3.9%. Cargo volumes of refined products fell by 13.1%, especially due to lower fuel oil supplies in Russia, but other cargoes rose: crude oil rose by 5.4% and other bulk liquids by 18.4%. All other liquid bulk segments showed growth: including chemicals, biofuels, vegetable/animal oils and juices. And LNG throughput growth was very strong, up to 73.8%. The United States and other countries have supplied more LNG to replace Russian gas that was previously piped to Northwest Europe.

container

In the first nine months, the total weight of containerized cargo fell by 8.6%, while the volume of containers (TEU: 20-foot equivalent units) fell by 4.4%. Container shipments between Russia and Rotterdam have all but come to a standstill due to sanctions. In the past few years, about 8% of the container traffic in the Port of Rotterdam was related to Russia. The difference between weight in tonnes (-8.6%) and case volume in TEU (-4.4%) is due to a significant proportion of empty containers entering Rotterdam. With many ships not arriving on time and container logistics still being hampered by disruptions due to capacity constraints at the terminals, the reduction in volumes does make the logistical problems less of a problem. In addition, container freight rates have also dropped significantly. Both ro-ro and other breakbulk throughput increased by 15%.

The macroeconomic environment in general looks bleak, based on the ongoing war in Ukraine, inflation and deteriorating economic conditions. Nonetheless, the Port of Rotterdam Authority expects cargo volumes in 2022 to be the same as last year. Given the extremely challenging conditions faced by almost all industries, this will be a remarkable performance for Rotterdam's business community.