The Port of Rotterdam believes global trade is on the upswing. With increasing volumes at Europe’s busiest cargo port and despite lingering uncertainties, the positive momentum signals a promising outlook for the rest of the year.
Hanna Stelzel, director, containers, at Port of Rotterdam, said the port expects trade growth amid destocking and a cautious economic recovery.
“Over the last years, we have seen ongoing geopolitical unrest, low economic growth due to higher interest rates and faltering global trade, all of which have had a logical effect on throughput in the Port of Rotterdam,” she told Asia Cargo News.
“From the growth in container throughput, we see the first signs that world trade is picking up. However, these tentative signs remain highly uncertain due to rising global tensions,” Stelzel added.
Total cargo throughput in the Port of Rotterdam in 2023 reached 438.8 million tonnes, 6.1% less than the 467.4 million tonnes in 2022.
In the first half of 2024, cargo throughput was virtually unchanged compared to the same period last year, with volumes at 220.0 million tonnes, just 0.3% lower than the 220.7 million tonnes seen in 2023.
Stelzel, who took on her role on March 1, noted that the current figures “tell us that European industrial production is still suffering from high energy prices and low demand from the biggest declining sectors, such as construction, the processing and the automotive industries.”
“For 2024, we expect the trade to grow compared to 2023 due to increased consumers’ spending and lower stock levels,” Stelzel added. “Due to congestion in container hubs in Asia and shortages of ships and containers, the growth rate per month can still vary.”
She noted that roughly half of the containers handled in the Port of Rotterdam come from or go to Asia, and a large share of that is related to trade with China.
“China has become the world’s largest manufacturer since 2002. At the same time, Europe is an important sales market, particularly Germany, France and the UK. In addition, China has started to import more goods, for example, from Germany, which is an important country of origin. China will, therefore, remain an important trade lane for the Port of Rotterdam and other northwest European ports in the long term,” Stelzel added, amid increased talks of global sourcing diversification.
Meanwhile, for the first time in three years, the Port of Rotterdam's container segment also showed a slight increase of 2.0% in throughput (TEU) over the first quarter of 2024.
Stelzel said the situation in the Red Sea resulted in significantly fewer ships (down 24.5%) and less volume from Asia (a decline of 13.7%) in January and February due to delays and missed sailings.
Fitting in the changed sailing schedules initially led to the necessary adjustments in the logistics chain, though overall demand for freight is virtually unaffected, she added.
“That situation is now under control. In March, there were significantly more ships arriving (11.5%), and volumes from Asia recovered,” she told Asia Cargo News. “Cautious economic recovery and destocking are contributing to this.”
For the period, feeder traffic from Rotterdam to Mediterranean seaports also shows a strong increase (up 29.0%).
“As ships divert via the Cape of Good Hope and ports are bypassed, cargo destined for this region is shipped from Rotterdam to Mediterranean ports via feeder ships,” Stelzel said.
“We will carefully watch how the situation unfolds. Although we do not expect vessels to sail via the Suez any time soon, we do expect disruptions in the chain similar to the start of the situation in December last year.”
Stelzel said that as turbulent times continue, the port is focusing on investments to make it a future-resilient port.
“Against the backdrop of geopolitical developments and elections taking place in several countries, we are still experiencing a very unpredictable year,” she said.
“It is all the more important in these turbulent times for the port to maintain a steady course and to implement plans that will further the transition.”
The Port of Rotterdam hit important milestones in its transition to a sustainable port. Stelzel said that last year, the port made the final investment decision for the construction of the CO2 transport and storage project, Porthos.
Construction work also began on the national hydrogen network in the port.
“The port is all about long-term sustainable development,” Stelzel said, adding that the port is now making decisions related to electrolyzers for hydrogen and the realization of its Aramis project for CO2 capture and storage. Aramis is the successor to Porthos; all are projects needed to achieve the goal of 55% CO2 reduction by 2030 and becoming CO2 neutral in 2050.
Next to energy transition investments, she said that the Port of Rotterdam is heavily investing in infrastructural projects to optimize the accessibility of the port and industrial complex.
The port has also started preparations for the construction of a new railway yard on the Maasvlakte, a massive man-made expansion of the Europoort port and industrial facility within the Port of Rotterdam.
“Growth is not a goal in itself. As the port authority, we look beyond throughput figures and profitability. We want to further strengthen the Port of Rotterdam’s position as a container hub. However, we feel this is only possible if container volumes are handled in a sustainable, safe and efficient way,” Stelzel said.
“We are therefore working hard to strengthen our competitive position and improve the living environment with respect for people and the environment.”
By Charlee C. Delavin
Asia Cargo News | Hong Kong