Drewry's report shows that the revenue of container port operators dropped by nearly US$1.9 billion in the first half of 2020. In addition to the well-known global epidemic, the decline in freight volume and port congestion are also reasons.
Drewry Port Analyst Eleanor Hadland said in the webinar: "The profitability of container ports this year is not as good as that of container ships... Our cooperative operator's transaction volume in the first half of this year dropped by 4%, while Drewry estimates global port handling volume. A decline of 5.6%... In the first half of the year, 80% of companies reported a decline in revenue. In terms of profitability, 70% of the companies’ profit before interest, taxes, depreciation and amortization in 2020 Lower."
Prior to the outbreak, Drewry predicted that sales in the first half of 2020 will increase by 4.8%. This is equivalent to a global revenue growth of more than 7%.
"However, due to a nearly 6% drop in sales volume, the revised estimate is now 5% lower than in 2019 and 11% lower than the pre-epidemic forecast. For the entire industry, we forecast the interest, tax, depreciation and amortization in the first half of the year. Pre-sales profit will drop by about 16% from 2019 and 21% lower than the forecast before the epidemic."
Most operators have taken cost-cutting measures. During the epidemic, due to the adoption of new working methods, and due to illness or quarantine requirements for workers, the terminal must pay for absenteeism, so the actual labor cost has increased.
Turkey-based operator Yildirim announced today that it will add a surcharge to cover the additional expenses during the new crown epidemic . The company said: “Since the beginning of the epidemic, Yilport Holding has taken additional measures to ensure the continuity of all business partners. However, the increased cost of additional health protection and protective equipment has made it difficult for us to balance our expenses. Since January 1, 2021 Starting today, we will charge an emergency surcharge for each import and export container ."
Martin Dixon, a shipping analyst, said: " The most important factor in the surge in ship operating costs is labor costs. Due to the inconvenience of crew changes, labor costs have soared . According to forecasts in 2019, labor costs can only increase by 1.3%, but in fact, in 2020 Labor costs rose by 6.2%."
