50% of ports return to normal container vessels – Report

Over 50% of ports have seen a return to normality for container vessels at this time of year, a new report shows.

The half-year report of the IAPH-WPSP COVID-19 Port Economic Impact Barometer has found some 56% of ports are now reporting similar numbers of container vessel arrivals comparable to the same period last year, which is the highest percentage to date.

“With generalized lockdowns now limited, the return of vessels and the lower numbers of blank sailings continue, yet these happen at a slower pace. About 16% of the respondents even point to increased vessel activity,” said the report.

The report follows the six-month anniversary of the World Health Organization (WHO) announcement of COVID19 as a global pandemic. It summarises all findings from its twelve surveys of global ports since early April, including its most recent survey to ports in week 36, which summarises responses from 85 ports.

Delayed/postponed projects

Projects already commenced during the pre-COVID-19 period continue as planned, however, 60% of investment projects from the responding ports have seen minor or major delays.

Data on planned infrastructure investments from the week 36 survey shows 69% of the surveyed ports reported that the majority of their investment plans have been delayed in some way, or amended. 41% of the ports said that the delays in investment have been, at least for the moment, minor.

Due to the changing conditions, major investment delays are occurring in 19% of the ports. 4% have decided to shelve or cancel existing investment plans, while 3% of respondents have already decided to replace specific investments by other ones.

Notably, three of the surveyed ports reported that given the emerging conditions they decided to accelerate their existing investment plans and execute them faster than initially scheduled.

Co-author, Professor Thanos Pallis, commented: “In some cases, existing delays are happening due to difficulties in obtaining authorization by regional, federal, and/or national administrations. In other cases they are happening due to delays by third party contractors, most likely attributable in part to the availability of workers affected by the COVID-19 situation. However, in some ports, the observed delays seem to be part of longer-term adjustments with ports re-assessing investments once market conditions will allow for a clearer view of the total impact of COVID-19 on social aspects and market demand.”