Global Liner Shipping Conference : Need for Port Shakeup?

Global Liner Shipping Conference : Need for Port Shakeup?

At the 18th annual Global Liner Shipping Conference, Kim Fejfer, APM Terminals chief executive, delivered the terminal operators’ keynote address.

He spoke about the challenges facing port operators in the currently market, and spoke of how the industry is in need of a port shakeup.

“In today’s competitive environment, we need to become more standardised across our global portfolios, apply more technology to our terminal processes, use our scale, use more flexibility with our labour and partner with customers to get to the next level of efficiency in the industry,” Mr Fejfer explained.

He added: “At the individual port complex level, there is a need for a port shakeup.”

With the Port of LA and Long Beach having 15 different container terminals with various alliances wanting to call on them, the chief executive noted that it results in a high level of cost and waste for intra-terminal transfers.

He said: “If port operators are to contribute to the efficiency of shipping lines we have to drive rationalisation, consolidation and segmentation to serve the larger vessels and smaller vessels. More investment is needed in port infrastructure.”

It is thought that on a global level ocean carriers are consolidating port calls to achieve network efficiency, this allows them to tailor their networks to bigger import/export gateways and super large hub terminals.

Mr Fejfer also spoke of other trends, away from standardisation, that he believes shape the industry.

Such as the idea that ultra large vessels are entering the major trade lanes, that the liner industry consolidation is reshaping port call selection and frequency, and that shipping lines are under extreme cost pressure.

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