WEEK 44 MARKET UPDATE

APM TERMINALS AND DP WORLD JOIN FORCES ON CONTAINER HANDLING ELECTRIFICATION

APM Terminals, the terminal operating arm of A.P. Moller Maersk, and DP World have announced a joint initiative aimed at expediting the decarbonization of port terminals worldwide through the widespread electrification of container handling equipment (CHE), a critical component of port operations. Recent research has shown that the tipping point for battery-electric CHE can be reached within the next 2-8 years, provided that industry stakeholders take the necessary actions. The current global fleet of CHE, which facilitated the transportation of 815 million TEUs (twenty-foot equivalent units) valued at USD 8.1 trillion in 2020, is estimated to consist of 100,000-120,000 units. However, this fleet is responsible for emitting 10-15 million tonnes of carbon dioxide annually (scope 1 and scope 2).

PORT OF LOS ANGELES REPORTS INCREASE IN SEPTEMBER CARGO VOLUMES

The Port of Los Angeles has announced a rise in cargo volumes for the month of September, following in the footsteps of its neighbouring Port of Long Beach. The Port of Los Angeles handled 748,440 Twenty-Foot Equivalent Units (TEUs) in September, representing a 5.4% improvement compared to the same period in 2022. Notably, imports saw a significant increase of 14%, while exports experienced a remarkable jump of 55%. This marks the second consecutive month of year-over-year growth for the Port of Los Angeles. loaded imports at the Port of Los Angeles reached 392,608 TEUs a 14% increase compared to the previous year. Loaded exports showed even stronger growth, reaching 120,635 TEUs, a remarkable 55% increase compared to 2022. The port noted that this marks the fourth consecutive month of year-over-year export gains.

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LACK OF INVESTMENT CONSTRAINING US BREAKBULK PORT CAPACITY

Breakbulk cargo shippers are concerned about a lack of space at US ports as major gateways focus on developing their container and roll-on/roll-off (ro/ro) shipping businesses are looking to so-called secondary ports for additional capacity. A lack of investment in breakbulk port facilities will create severe constraints on both cargo owners and vessel operators as offshore wind construction accelerates and new types of energy projects are developed.

GEORGIA TELLS SUPREME COURT ILA RULING COULD JEOPARDIZE PLANS FOR THIRD OCEAN TERMINAL

The Georgia Ports Authority (GPA) says its business model and plans to add a new terminal are at risk if the International Longshoremen’s Association (ILA) is allowed to sue ocean carriers that call on marine terminals using non-union labor. GPA made the argumen in an amicus brief filed with the US Supreme Court. The brief, filed in coordination with the state of Georgia, came in defense of the South Carolina Ports
Authority’s September petition asking the Supreme Court to overturn a July appellate court ruling that allowed the ILA to sue carriers docking at the Hugh Leatherman Terminal.

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