For the YTD ending on 31 October 2023, the Drewry Port Equity Index dropped 8.7% compared to the significant run-up of 9.2% recorded by the S&P. Over the time, Global Trade Organisations (GTOs) and Regional Trade Organisations (RTOs) declined 9.4% and 7.5%, respectively. However, when considering the quarter-to-date performance, the Drewry Port Equity Index declined 2.9%, in line with the decrease of 2.2% recorded in the broader S&P. Both GTOs and RTOs remained in the red, registering a negative growth of 2.7% and 3.4%, respectively. • In 3Q23, the US economy expanded by 4.9%, marking its fastest growth since 4Q21. This impressive growth was largely due to the rise in wages and a highly competitive job market, leading to a surge in consumer spending. However, despite these positive indicators, the stock market saw a decline as investors remained wary of the potential consequences of a sustained increase in interest rates by the Federal Reserve. While it is unlikely that such extraordinary growth can be sustained in the long run, it did showcase the economy’s resilience in the face of aggressive monetary policies.
According to the latest data published by Drewry, the Global Container Port Throughput Index increased 0.6% MoM in August 2023 to 109.8 points, 0.1% below August 2022. However, the rolling 12-month average growth rate for global port handling softened marginally to -1.2% compared to -1.1% in July 2023. Drewry’s Nowcast estimate is for a further 1.4% MoM increase in the global index for September 2023.
On 23 October 2023, Mediterranean Shipping Company S.A. (MSC) published the offer document for its takeover bid of Hamburger Hafen und Logistik Aktiengesellschaft (HHLA). This move followed a prior Binding MOU between MSC and the City of Hamburg. The City of Hamburg will maintain a minimum 50.1% stake in the JV, with MSC holding 49.9% of HHLA. BaFin, the German regulatory authority, approved the proposed acquisition terms, advancing the process. MSC had already acquired 4.69% of HHLA’s Class A Shares via the stock exchange by the time the offer document was released, and, with the A and S shares held by the City of Hamburg, the JV partners now possess >75% of HHLA’s share capital.
APM Terminals and DP World have joined forces to accelerate port terminal decarbonization through electric container handling equipment. Research suggests wide adoption in 2-8 years with industry-wide action, including emission-free concessions and collaboration.
Source: Drewry Maritime Financial Research