Westports sees lower container volume this year

KUALA LUMP UR: West ports Holdings Bhd expects lower overall container volume this year as competition in the industry hots up.

For the first quarter ended March 31 this year, Westports recorded one per cent growth in container volume to 2.4 million twenty-foot equivalent units (TEUs).

However, for April and last month, the port operator recorded lower volume than it had expected.

For the January-May period, Westports posted a three per cent drop in throughput volume to 3.95 million TEUs compared with the same period of last year.

“The realignment of the container shipping industry from April 1 this year saw the phasingout of previous services under the Ocean 3 Alliance (O3), CKYHE and G6, and the gradual phasing-in of services under the new Ocean Alliance and THE Alliance,” Westports said in a statement yesterday.

“The first vessel call at Westports under the Ocean Alliance was on April 6,” it added.

The O3 alliance comprised CMA CGM SA, China Shipping Container Lines Co Ltd and United Arab Shipping Co, but the new Ocean Alliance consists of CMA CGM, Cosco Shipping Line Co Ltd, Evergreen Marine Corp and Orient Overseas Container Line Ltd.

THE Alliance is made up of NYK Line, Mitsui OSK Lines Ltd, Kawasaki Kisen Kaisha Ltd, Hapaq-Llyod AG and Yang Ming Maritime Transport Corp.

Westports said most of the 12 services calling at its port under the Ocean Alliance and THE Alliance were more focused on eastbound services than westbound, unlike O3 of which services were more spread out across the regions.

“The vessels for these services will need to sail from the East such as China towards their final destinations in the West such as Europe and then back to the East again, and they will call at Westports only on the backhaul segment of their voyage.

“Due to the number of weeks sailing from the East to the West and then only back to the East, Westports terminal would only handle some of these vessels’ container requirements in the latter part of May or even June.

“With the more moderate container throughput, we now expect the year’s overall container volume to be lower than the previous year by a single-digit percentage,” it added.

Meanwhile, container volume mix was more favourable as there was stronger growth momentum of higher yielding laden gateway boxes, said Westports.

The overall container terminal utilisation has now shifted to more optimum levels that would facilitate Westports’ focus on enhancing its service quality, improved efficiency and productivity levels.

“The capacity expansion at CT 8 Phase 2 and CT 9 Phase 1 would also accommodate the resumption of volume growth, after the current recalibration process within the container shipping industry,” it added. Ooi Tee Ching