CONTAINER terminal operator earnings have declined as slowing trade and escalating costs have brought margins under pressure, says London's Drewry Maritime Research.
"But an improving economic outlook and falling energy costs are expected to provide some reprieve through the second half of the year," said a Drewry article in Hellenic Shipping News Worldwide.
Widespread easing of port congestion reduced average container dwell times at terminals and led to a corresponding fall in storage revenues in 4Q 22, according to the latest readings from Drewry's Global Container Terminal Revenue Index which is published in the Ports and Terminals Insight.
In their financial statements, both Maersk's APMT and Westports confirmed that their storage income have dropped back to 2020 levels.
Meanwhile, costs continued to rise, according to Drewry's Global Container Terminal Cost Index, due to continuing inflationary pressure particularly from escalating labour and energy costs.
In summary, the expected easing in energy and fuel costs plus recovery in volumes is expected to relieve the pressure on margins in 2H 23.
Hence, despite economic headwinds, Drewry expects container terminal operator earnings to recover through the course of the year on reduced cost pressures and inflation-linked revenue protection.
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