DP World volumes dip amid headwinds

DP World, the Dubaibased ports operator, yesterday reported a decline in the container volumes it handled in the third quarter of 2018 amid what it described as a “challenging macroeconomic environment.”

The company handled 18 million TEU (twenty-foot equivalent units) in the third quarter of this year, a 0.5 per cent decline from the 18.28 million handled in the same period last year.

Container volumes in the UAE specifically also dropped, falling 6.7 per cent year-on-year during the quarter to 3.6 million TEU.

Outlook

DP World said in a statement the outlook for volumes in the UAE remains challenging.

“In the UAE, the volume weakness in the third quarter of 2018 is mainly due to loss of low-margin throughout, where our focus remains on profitable cargo, and while the near-term volume outlook in Jebel Ali remains challenging, we have taken measures to maintain profitability,” said Sultan Bin Sulayem, group chairman and chief executive officer of DP World.

He added that, globally, there is “general caution in the market given the current uncertainty in global trade.”