Global supply chain disruption resulted in increased cargo dwell times in 2021 which generated additional storage charges, lifting terminal operators’ revenue growth above that which could be justified on the basis of volume recovery alone.

Port congestion does not appear to have adversely impacted financial performance, despite the widespread decline in productivity levels. The revenue raising mechanisms (i.e., paid-for overtime, storage charges) have so far proven to be sufficient to offset the additional congestion-related operating costs. Operators also cite the continuing cost control measures implemented in response to Covid as having a positive impact on margins.

“Once global supply chain disruption eases, which is now expected in 1H23, there is heightened risk that revenue gains will retreat as dwell times return to pre-pandemic levels,” added Hadland.

Capital expenditure bounced back in 2021, rising 31% YoY, but operators now face the twin challenges of longer lead time for handling equipment and rapidly rising costs. Drewry’s research also identifies that the pace of fund raising has slowed since 2020, with rising interest rates putting a brake on the market. In general, favourable terminal operator financial performance has translated into robust balance sheets. With the exception of COSCO Ports and ICTSI, net debt fell, leading to a reduction in net gearing by 8.5 percentage points to 54.7%.

Looking back at 2021, the number of companies that qualified as GTOs fell from 21 to 20, with K Line dropping out of the rankings following the sale of its US operations in 4Q20. Growth in equity-adjusted throughput for the remaining 20 companies classified by Drewry as GTOs was 7.0%, marginally higher than the 6.8% growth in global port handling recorded in 2021. The leading operators handled over 48% of the global port volumes on an equity-adjusted basis, stable on a like-for-like basis vs. 2020.

APM Terminals reported the largest absolute increase in equity-adjusted volumes, with volumes up 4.7 mteu (10.3%) YoY.

Source: Drewry’s Global Container Terminal Operators Annual Review and Forecast 2022/23