Next decade to see growth stemmed by digital change
Global port volume is to continue to grow over the next ten years, albeit at a slower pace since the prior decade, according to a report by Fitch.
Fitch has highlighted the aftereffects of the US-China trade war and negative industrial trends as the primary cause of the slowdown.
In the report, entitled ‘10 Years on Ports’, Fitch argues that an increase in trade hostilities and shifts in centres of production will all affect growth in ports and terminals around the world.
Disruptive technologies are also expected to impact operations at a time when the supply chain is fundamentally restructuring.
Despite not being directly linked to US or Chinese tariffs, ports in Europe and the Middle East will be affected by a knock-on effect of the trade war impact.
Senior Director at Fitch Emma Griffith had this to say: "Primary ports of call will be able to weather the storm despite elevated concentration in Chinese trade exposure in some cases.
"Conversely, smaller and more specialized ports will have less leeway to offset major losses in imports and exports if commodities handled are targeted by tariffs.
"Port investment will continue to focus on capacity enhancements to accommodate larger vessels while investor interest in North American port assets appears to be increasing."