North European ports face 10% fall in container

North European ports are set to see container throughput fall by almost 10% in the coming six months, marking a sharp deterioration from their performance in the corresponding period in 2011-2012, according to new analysis from Hackett Associates and the Institute of Shipping Economics and Logistics.
The global port tracker survey projects that total volumes, including deep sea, short sea, transshipment and empty movements will fall by 9.3% in comparison to a 6.7% drop last time round.
Declining consumer confidence in the euro zone adds to concerns that the region’s economy is heading for a deeper contraction in the fourth quarter, as households cut back on their expenditure, reflecting fear that breadwinners may lose their jobs.

Consumer spending has been hit hard by rising unemployment, low wage growth and tight fiscal policy in many countries. The euro zone unemployment rate climbed for the 17th successive month to reach a record high of 11.6% in September. Various manufacturing indices all suggest weakness in output.

“This continued weakness in the European economies confirms that the recession is here and will continue to impact trade flows over the coming six months,” noted Ben Hackett of Hackett Associates.

“Looking forward into 2013 does not provide for much optimism. Our model suggests that recovery will not come before 2014.”

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