IAPH-WPSP Port Economic Impact Barometer - 16 April 2020 Authors : Professor Theo Notteboom Shanghai Maritime University, Ghent University and ...
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IAPH-WPSP Port Economic Impact Barometer
Authors : Professor Theo Notteboom (Shanghai Maritime University, Ghent University and University of Antwerp)
Professor Thanos Pallis (University of the Aegean and Universidad de Los Andes)
16 April 2020Survey set-up 1. Impact of crisis on vessel calls
The IAPH-WPSP survey on the impact of COVID-19 is conducted on a weekly basis with The situation for container vessel calls and other cargo vessel calls remains fairly similar.
the aim of monitoring the current situation in world ports and trends compared to previous On the one hand, over 40% of the ports experience moderate (minus 5% to 25%) and in
weeks. The first survey results were collected in week 15 of 2020, with the contribution of some ports even significant decreases (in excess of a 25% drop) in the number of calls.
67 ports from all over the globe. The second survey round focuses on week 16 of 2020. Compared to last week, we see a significant increase in the share of ports reporting
The number of respondents increased from 67 to 90 with Europe still as the leading region decreases of 25% or more in port calls of other cargo vessels (14% this week compared
with 39 respondents or 44% of the total (compared to 54% of the answers in the previous to 7% last week). On the other hand, more than half of the respondents report no changes
week). North Asia and South East Asia/Australasia remain well represented. Central/South compared to normal conditions. The cruise/passenger market remains the most affected
American and African ports significantly improved their response rate. The former port by the COVID-19 contagion. Only small changes are observed for this vessel category
region now reaches more than 14% of all answers compared to only 9% in week 15, while compared to last week: some 10% see an increase in vessel activity compared to only 6%
Africa represents 11% of the sample. Thus, this week’s results give an even more global in week 15. About two thirds of the respondents still indicate that passenger vessel calls
picture of the impact of COVID-19. About 43% of the respondents also filled out the survey are down more than 50%, in some cases even down more than 90%. These figures show
last week, implying that we welcomed 51 new ports in the survey sample. Note that 30 the combined effect of partial or full lockdown measures in a lot of countries around the
ports did not complete the survey this week despite having participated in the first edition. world with a nearly full cessation of cruise activities.
Consequently, the comparative results of weeks 15 and 16 need to be interpreted with
Blank sailings of container lines are affecting ports in several regions, spanning from South
some care as the sample set of ports is not the same.
East Asia to Europe and the Americas. The impact is anything but similar, i.e. some ports
in the Americas consider the continuation of blank sailings from both Europe and Asia
‘considerable’ and other ones as ‘minor’. Some major ports reported that for the ultra large
Participating ports per region vessels (>330m length and/or >45m beam) the decrease lies in the range between 25 to 50%.
(N=90; data collection: 14 April 2020
A number of general cargo ports have been affected by the state of emergency and the
discontinuation of economic life in the respective countries: there are ports reporting
10; 11%
13; 15% that construction works have been stopped so there are no vessels carrying cement and
Africa sand in bulk as per usual. Last week, ports in South-East Asia reported an impact of
government-imposed measures prohibiting maritime traffic entering in the country with
9; 10% South East Asia / Australasia (including exception of essential cargoes. This week we have similar reports from Latin American
New Zealand and Pacific Islands)
ports. In some parts of the world, ports experience less calls due to the rescheduling of
North Asia (including China, Korea and itineraries, in turn the result of the decrease in cargo volumes. Other ports experienced
Japan)
the negative impact of a decline in exports, because of the ‘closing of destination ports’ in
North America (U.S. and Canada) Asia and Europe. Exporting difficulties have been reported by several ports, but this is also
8; 9% the reason leading Latin American ports have reported a decrease in calls of all types of
Middle East / Central Asia (including
Arabian Gulf and Indian Subcontinent)
vessels at a scale of over 30%. This region is less impacted by the situation in the case of
the cruise ships as this period of the year is the end of the season.
Europe
Cruise/passenger terminals closures and limitations to crew disembarking continue. Cruise
7; 8% lines have also decided to cease operations. Cruise vessels are berthing for lay-up (no
Central and South America
passengers, only crew), with some ports limiting the number of crew remaining on board.
3; 3% 40; 44% Ports in the most affected European countries reported that the situation for passenger
vessels is continuously worsening, as the cancellation of all cruise ship calls is now
By: Theo Notteboom - Thanos Pallis
followed by the suspension of ferries at a time when departures normally intensify.
For some ports though, life is close to normal. In many countries the reporting period was
an unusual period as it spanned the Easter break, thus it is worth continuing monitoring
the trends – not in the least because a few ports did report some cargoes slowing as
stocking areas and tank farms fill up.are also in place. Some ports allow crew transfer vessels but have limited the amount
How would you best describe the number of vessel calls in your port in the past of persons that they take in order to have enough social distancing on board. In some
week, compared to what would be expected in the same week under normal cases, the measures applied to all vessels include operational ground staff refraining from
conditions for this period? speaking to vessel crew or vessel agents directly, not going onboard until the port health
officer gives the confirmation, including the compulsory use of facemask gloves and safety
100% 1% 1%
2% 1% 2%
5%
glasses. Suspected vessels remain in quarantine for 14 days with tests at the end of the
13%
90% period. Compared to last week, some ports now record difficulties even for charities with a
long tradition of aid to seafarers now being prevented from getting on board. Beyond the
80% 39% 38% 34%
25% overall ban on foreigners in many ports, neither passengers nor crew of cruise vessels are
70% 66% 64% allowed to go on land.
60%
50% Were there any extra restrictions on vessels introduced in the past week, for either
40% cargoes or ship crews?
53% 5%
52% 54% 54% 6%
30% 7% 100%
4% 9% 6%
20% 16% 14% 3%
17% 14% 90% 1%
4% 14% 26%
10% 4% 4% 12% 35%
7% 3% 5% 4% 2%
80%
5% 3%
1% 1% 3% 2% 4%
0% 5%
W15, 2020 W16, 2020 W15, 2020 Other W16, 2020 Other W15,2020 W16,2020
70% 30%
29% 7%
Container vessels Container vessels cargo vessels cargo vessels Passenger vessels Passenger vessels 5%
(n=56) (n=69) (n=61) (n=79) (n=47) (n=56) 60% 3%
12%
More than 50% increase 25 to 50% increase 5 to 25% increase Rather stable situation 50%
5%
78% 75%
5 to 25% decrease 25 to 50% decrease More than 50% decrease 40%
59%
30% 53% 44%
51%
By: Theo Notteboom - Thanos Pallis
20%
10%
2. Extra restrictions on vessels
0%
The COVID-19 outbreak can lead to extra restrictions on vessels. The results for this W15, 2020
Container vessels
W16, 2020
Container vessels
W15, 2020 W16, 2020 W15, 2020 W16, 2020
Other cargo vessels Other cargo vessels Passenger vessels Passenger vessels
week differ from the previous week with overall a large increase in the share of ports (n=51) (n=68) (n=57) (n=79) (n=43) (n=58)
imposing no restrictions on vessels. We believe these changes are not so much a result
None Less Few Many All incoming
of an overall relaxation of restrictions. Instead, they are linked to the much stronger
representation of South/Latin American and African ports in this week’s respondent group.
Overall, the ports in these regions impose less restrictions on vessels. Based on this By: Theo Notteboom - Thanos Pallis
week’s results, it can be concluded that the picture for passenger vessels remains very
mixed: 59% of the responding ports have not imposed additional restrictions, while 26% 3. Extra delays due changes in port call procedures
of the ports report extra measures on all incoming passenger vessels. More than three
quarters of the respondents have not imposed any restrictions on container and other Inland barge operations are seeing less disruptions compared to last week: nearly 8 out
cargo vessels. of 10 ports indicate that there were no extra delays during the past week due to changes
in call procedures (e.g. hygiene inspections, distancing of workforce, disruption of port
Mandatory ship sanitization certificates have been introduced in some countries. or related services), while 15% of ports report minor delays (< 6 hours). Last week these
Dedicated COVID-19 protocols while vessels are at berth continue to apply requiring figures were 7 out of 10 and 19% respectively. For container vessels and other cargo
adherence to health declarations. These protocols include provisions for no vessels, the situation has slightly improved as well: only 8% of the ports report delays
disembarkation, or sanitary inspections, which are applied to vessel crew, as well as road or major delays for container vessels. For other cargo vessels, this figure amounts to
freight, train and locomotive crews. Disinfection of crane cabins and other common areas only 4%. The passenger segment remains the most affected vessel category: 28% ofthe ports have discontinued this type of operations, while 6 out of 10 ports report no 4. Impact of crisis on hinterland transport
additional delays, a moderate improvement compared to last week which is to some extent
attributable to geographical changes in the port sample. Border checks, a lower availability of truck drivers and disruptions in terminal operations
can negatively affect trucking operations in/out of the port area and to the hinterland. About
While the overall situation remains stable compared to the past week, some isolated 10% of the ports report delays (6-24 hours) or heavy delays (> 24 hours) in cross-border
delays were reported at European ports as well as occasional delays due to crew health road transportation, a drop compared to the 22% of week 15. However, 1 out of 10 ports
issues at African ports. Other than these there is no change: most ports are operating reports that cross-border trucking has been discontinued, a sharp increase on the figure of
as normal, with allowance for required/advised social distancing and the longer shift last week. The share of ports facing minor delays in cross-border truck traffic has remained
changeover times, due to both social distancing and need for cleaning equipment and the same. For trucks arriving or leaving the port, we see several trends: a small increase
operational vehicles (STS cranes, vans, side and front loaders) between users. In from 61% to 67% of ports reporting normal activity, more ports reporting minor delays
several ports, the terminals have reorganized their work with container terminals shifts instead of major delays, but also a small number of ports now indicating that trucking
been reduced by half an hour or so in order to allow for the sanitization of vehicles and operations in/out the port have been halted. The situation for rail and barge services is
equipment used by workers before each shift change. Some have implemented a limit more favourable with only 2 out of 10 ports being affected by (minor) delays, a moderate
to at-the-gate delivered containers (gate in and gate out procedures) per hour. At other improvement compared to week 15.
terminals, the time needed for mooring a vessel to the berth till the start of the cargo
loading and unloading has increased due to similar measures. There is no change yet as In certain cases, significant reductions in trucks dealing with import/export can be
regards the slowdown of ro-ro traffic, in particular car carriers, due to reduced safe staff observed. Trucks (in/out port) have been also affected by government-imposed restrictions
numbers on shuttle buses used to carry drivers from parking areas to the quays after to only allow delivery within districts. Some downstream warehouses cannot accommodate
having unloaded the cars. additional non-essential cargoes, especially in those cases that the countries are in a
Were there any extra delays during the past week due to changes in port call procedures? How has hinterland transport been affected by the COVID-19 situation compared
(hygiene inspections, distancing of workforce, disruption of port or related services etc.)
to normal activity during the past week?
100% 4% 3% 2% 4% 4% 6%
4% 5% 4% 4% 100% 3% 2% 4% 3% 2% 4%
1% 3% 2% 6%
90% 28% 15%
8% 10%
4% 4% 4%
24% 40% 19% 90% 2% 19% 15% 16%
80% 34%
28% 29% 14% 8%
13%
80% 24% 33%
8%
70% 4%
8% 70% 20% 17%
19%
60% 3%
3%
60%
8%
50%
69%
79% 50%
40% 72%
79% 77%
65% 65% 60% 40% 67% 69%
30% 58%
59% 61%
48% 30% 57% 59%
20%
20%
10%
10%
4%
0% 2% 3%
W15, 2020 W16, 2020 W15, 2020 W16, 2020 W15, 2020 W16, 2020 W15, 2020 W16, 2020 0%
Container Container Other cargo Other cargo Passenger Passenger Inland barges Inland barges W15,2020 W16,2020 W15,2020 Trucks W16,2020 Trucks W15, 2020 W16, 2020 W15. 2020 W16. 2020
vessels (n=50) vessels (n=65) vessels (n=55) vessels (n=75) vessels (n=40) vessels (n=50) (n=26) (n=34) Trucks Trucks (in/out port area) (in/out port area) Rail services Rail services Barge services Barge services
(cross border) (cross border) (n=54) (n=75) (n=39) (n=48) (n=27) (n=31)
(n=37) (n=49)
Return to normal No changes Minor delays
Return to normal No changes Minor delays (< 6 hrs)
Delays (6-24 hrs) Major disruptions (>24hrs) Discontinued operations
Delays (6-24 hrs) Major disruptions (>24hrs) Discontinued operations
By: Theo Notteboom - Thanos Pallis
By: Theo Notteboom - Thanos Pallislockdown or curfew situation so road transport is fairly severely affected. For some ports overcrowding of relevant storage areas near the quays is occurring. For the specific week
restrictions in truck mobility and delays due to applied traffic procedures (especially at examined, the absence of collections over the Easter public holiday rather than COVID-19
borders) have started to increase waiting times for cargoes and occasionally results in had an impact on increased capacity utilization in some ports. For others, a changing
a lack of available space at the yard. Nonetheless, in other countries the situation at national policy and the unlocking of inland distribution is spreading positive effects on
container terminals is getting somewhat better. This follows a return to normal conditions ports’ capacity to deliver essential and non-essential goods.
for the pickup and delivery of goods at the warehouse or storage facilities of shippers and
the visits of receivers, even though their main core production is still below the normal
level. Mandatory warehouse opening in these cases leads to projections that rather soon What is this week’s situation in terms of capacity utilisation, including
congestion levels at the yard will return back to normal. The reduction in volumes has been warehousing and distribution activities in the port?
also evident in some ports, which are linked to the reduction in weekly railway services.
However ports advise that rail continues doing a work well in ensuring inland connections 100% 5% 4% 1% 1% 2% 5% 6% 3%
10% 4%
for trailers and swapbodies. 90%
8% 7%
12%
6%
10% 16% 9%
5. Impact on capacity utilisation including 80%
warehousing and distribution activities 70%
55%
61%
60% 62% 62%
Warehousing and distribution activities in ports may see changes due to the fall in demand 63% 62% 66%
for consumer products in countries with partial or full lockdown measures. Hoarding 50% 63%
behaviour can disrupt the foodstuff supply chains. Tank storage parks for liquid bulk, and 40%
oil products in particular, might see changes in their utilization degree caused by the sharp
30% 10%
decline in the oil price and in the use of kerosene, diesel and gasoline. 14%
8% 10%
20% 14% 4%
The survey results show the COVID19 crisis has resulted in 35% of ports reporting an 17% 12% 6% 6%
9%
6% 4%
increase in utilisation of warehousing and distribution facilities for foodstuffs and medical 10% 10%
6% 2% 7%
2% 10% 3%
8% 10% 8% 4%
supplies, with some ports reporting capacity shortages. Last week these figures were 0% 2% 2% 1% 3% 1%
slightly different with more ports reporting a major increase in utilisation levels (10% then W15, 2020
Foodstuffs and
W16, 2020
Foodstuffs and
W15, 2020
Consumer
W16, 2020
Consumer
W15, 2020
Liquid bulk
W16, 2020
Liquid bulk
W15, 2020
Dry bulk
W16, 2020
Dry bulk
vs. 2% this week) and with less ports reporting a minor under-utilisation (10% then vs. 5% essential medical essential medical
supplies (n=51) supplies (n=64)
goods
(n=52)
goods
(n=68)
(n=48) (n=65) (n=51) (n=70)
this week). The situation for consumer goods has almost remained the same, although
there is an increase in the share of ports dealing with major increases in utilization or Capacity shortages Major increase in utilisation Increase in utilisation Minor increase in utilisation
facing capacity shortages (11% now vs. 8% last week). In the dry and liquid bulk markets,
Rather stable Minor under-utilisation Under-utilisation Severe under-utilisation Operations discontinued
almost two thirds of the respondents see no changes in utilization levels. The remaining
ports are fairly evenly distributed between under-utilisation and increased utilisation of
storage facilities. The changes compared to last week are minor. A small minority of port By: Theo Notteboom - Thanos Pallis
situations now point towards capacity shortages.
Capacity utilization including warehousing and distribution activities are anything but
uniform. Several ports report an increase in port and terminal utilization due to an increase
6. Impact on availability of port workers
in the imports of essential goods, such as grains (rice, wheat). Stockpiling practices of The measures to fight the COVID-19 outbreak up until now have not had a huge impact
importers have also emerged and as a result a major increase in capacity utilization for on the availability of port workers. Still, 16% of the ports mention that they face shortages
these deliverables is not uncommon. For exporting countries, the outlook for some bulk of dock workers (status quo compared to week 15), 8% of the sample is confronted with
cargoes is bleak, and for other bulk commodities such as ores, utilization is close to zero. shortages for the delivery of technical-nautical services (pilots, towage, mooring), while 8%
Liquid bulk provides a similar picture. For some ports these cargoes have reduced due of ports are short of personnel for harbour master services (vs. 4% last week). It is hopeful
to less demand for petrol and diesel. For others, liquid bulk, especially for imported fuels that an increasing number of ports are indicating that more workers in all three categories
and power generation-related products, is very low due to a lack of industrial production are returning to work, pointing towards a gradual return back to normal. Nearly 26% of
and mild climate. Yet, some ports reported strategic storage of liquid bulks by traders in the port authorities report a moderate to more serious decline in staff availability (30% last
anticipation of future commodity price developments. The most critical situation recorded week). We observe a steep increase in the share of ports reporting about staff returning to
is for the automotive industry. As dealers fail to collect their new cars (sales collapse), work (17% now vs. 7% last week).The number of ports reporting teleworking of administrative personnel has expanded, 7. Call for ports to participate in this survey
transforming working from home as a quite regular practice, especially for employees in
administrative services. And as already reported, there are ports that “assigned a home This weekly report will be published every Thursday on the World Ports COVID19
office to the administrative workers” as a formal policy. Working in shifts is another practice INFORMATION PORTAL under the FAQ section “WHAT IS THE ECONOMIC IMPACT ON
being endorsed, in order to decongest offices and to avoid a whole section/department THE GLOBAL PORT SECTOR?”
being quarantined should one of the staff become infected. This is not least because Port
Authorities that adopted a full day smart online working from home approached low levels All ports are welcome to participate in this survey by contacting us on the following email :
of efficiency in some offices where physical coverage is recommended and had to adopt covid19@sustainableworldports.org
an on-site rotation for workers.
Operational workers remain in attendance at work as normal although port workers have
to respect the safety measures (i.e. longer sifting time; personal protection mask etc.) in
order to prevent direct contact (e.g. social distancing). A few of the ports reported that a
number of the dockworkers are being sent home due to lack of work, with the State paying
part of the salary, while reduced working hours are also applied for some. In one country
ports experience some shortages as those workers in risk groups (such as people above
60 years old) are either working from home or have been granted paid vacation with this
resulting in shortages in mooring crews and dock workers. Overall though, disruptions
have been limited with many ports being able to continue operations and remaining open
for trade.
What was the availability of port workers last week?
100% 2% 3% 2% 3% 2% 3% 2% 1%
5% 2% 5% 2% 5%
6%
90% 14% 13%
25% 16%
80%
70%
60%
84% 79% 86% 79%
50% 72% 68%
60%
40% 65%
30%
20%
5% 1% 6%
10% 1%
7% 9% 4% 6% 5% 9% 6%
5%
5% 3% 5% 4% 5% 3% 2% 5%
0%
W15, 2020 W16, 2020 W15, 2020 W16, 2020 W15, 2020 W16, 2020 W15, 2020 W16, 2020
Dock workers Dock workers Technical-nautical Technical-nautical Harbour master Harbour master Port Port
(n=57) (n=77) services (pilots, services (pilots, services services Authority Authority
tugboat and tugboat and (including VTS (including VTS (n=57) (n=77)
mooring crews) mooring crews) operators) operators)
(N=57) (N=77) (n=57) (n=77)
Return of all to work Major return to work Moderate return to work Normal presence
Moderate shortages Shortages Severe shortages
By: Theo Notteboom - Thanos Pallishttps://sustainableworldports.org/world-ports-covid19-information-portal/
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