Logistics Industry Update – Q1 2015
Container shipping volumes have been forecasted to grow by 5.5% year-on-year across major trade lanes in 2015, described as “relatively positive” year by the Drewry Maritime Research.
A high demand for skilled workers is a key trend emerging within the logistics and shipping industry. With this they are facing 2 challenges when it comes to hiring new talent:
- They are facing difficulty attracting talent.
- They are having difficulty with the evolution of the ideal logistics skill set.
It is predicted that the industry will see a shortage of nearly 20 million professionals in 2015, in particular, “skilled logistics managers due to their ability to spot complications and create effective solutions – all in support of the company’s objectives.”
The UAE continues to be the dominant logistics and shipping force in the gulf region largely due to its investment in facilities. The Khalifa Port has had a successful opening since beginning operations in 2012 and Jebel Ali continues to expand its capacity.
It is projected that its capacity will increase to 19 million containers in 2015 and its throughput to increase by 3.5% in 2015 and 3.9% by 2019.
Growth is expected throughout all of the UAEs main ports with Port Khalifa’s throughput expected to expand by 18.7% with growth likely to remain strong, averaging 15.6% to 2019 and Sharjah terminals throughput growing by 5.9% in 2015.
These big numbers, combined with strong performances from smaller terminals such as Sharjah mean a strong growth is forecasted for Q1 and through 2015 as the economy begins to strengthen.
Qatar’s shipping sector continues to rely heavily on the country’s key commodity, Natural gas. With the price of gas and oil relatively unrelated, this means export rates are forecasted to remain strong and their reports are somewhat unaffected compared to larger oil exporters within the region.
Looking into 2015, Qatar are looking to increase their container and dry bulk shipping presence through the development of the New Doha Port. This coupled with the heavy investment of foreign ports, particularly within Egypt, highlights Qatars exporting intentions over the next decade.
Some key figures include the port of Doha container throughput to grow by 5.7% and to average 10.9% per annum to 2019 – this includes transfer of operations to New Doha from 2016.
Still one of the largest ports in the world it remains unlikely to take over the port of Shanghai for the title of worlds largest container port. Despite a forecasted growth for 2015 through to 2019, the increased growth from Shanghai will mean that Singapore will be unlikely to take the title in the near future.
Nevertheless, positive growth show encouraging signs for the logistics hub heading into Q1, 2015 with gross tonnage to grow by 5.3% in 2015. This is largely due to a return to growth in Europe and ongoing recovery in the U.S.
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