Port of Rotterdam feels impact of COVID-19 on cargo volumes

July 26 ------ The Dutch Port of Rotterdam, Europe’s largest sea port, saw a 9.1 per cent decrease in its throughput in the first half of 2020 as a result of the economic impact of the COVID-19 pandemic. Total throughput stood at 218.9 million tons in H1 2020, compared to 240.9 million tons seen in the corresponding period a year earlier, which was a throughput record at the time. Global lockdowns have led to less production, consumption and trade. As a consequence, there has been less throughput of many types of goods in the port. In addition, some structural developments are still being felt, in particular the decline in the use of coal for energy and the decline in the trading of fuel oil between Europe and Asia. There was a slight reduction in container throughput, too. On the other hand, LNG and biomass throughput grew in the first half of the year.

“The Dutch economy and the port of Rotterdam are dependent on developments in world trade. The negative economic impact of the COVID-19 pandemic is being felt worldwide. It should therefore come as no surprise that throughput volumes in the past six months were considerably lower than in the same period last year,” Allard Castelein, CEO of the Port of Rotterdam Authority, commented. “On the positive side, the throughput volumes in the second quarter turned out to be better than initially expected.” Despite COVID-19 hurdles, the Port of Rotterdam remained 100 per cent operational in the first six months of this year.

The throughput of dry bulk amounted to 30.8 million tons, 19 per cent less than in the first half of 2019. Dry bulk accounts for 14 per cent of throughput in the port of Rotterdam. Falling volumes were seen primarily in the throughput of iron ore and scrap. A low gas price meant that more gas and less coal was used for power production. In addition, favorable weather conditions meant that there was an increase in the available wind energy, reducing the need to switch to coal-fired power stations. There was a sharp increase of 109 per cent in biomass due to the continued rise in co-firing in power stations.

Liquid bulk throughput amounted to 99.8 million tons. That is approximately 10 million tons less than in the first half of 2019, a fall of more than 9 per cent. Liquid bulk accounts for 46 per cent of throughput in Rotterdam. Mineral oil products volumes fell sharply (-22 per cent). In the case of crude oil, the fall was only slight (-4 per cent) and LNG throughput actually increased slightly (+2.6 per cent). Throughput of other liquid bulk in the first half of the year matched the level of last year. The COVID-19 pandemic led to a further drop in the gas price, making it appealing to use LNG from the North Sea and Atlantic Ocean for power production in Europe.

Container throughput was only 3.3 per cent down on 2019 — or 7 per cent in TEU. That is 2.5 million tons less cargo. Shipping companies cancelled up to 20 per cent of all their services in May and June. The decline in throughput was nevertheless less pronounced due to the increased call sizes of vessels calling at Rotterdam. The number of empty containers was considerably lower than in the same period last year because imports of containers from Asia have fallen while exports have actually risen. Break bulk fell by 11 per cent in the first half of 2020. RoRo throughput was 12 per cent lower. Most of the drop was at the beginning of the second quarter, when the lockdown was in place in most of Western Europe. Volumes increased again towards the end of the quarter.

According to the port authority, there is considerable uncertainty about how long the recession will last and when recovery will begin. The recovery of the world economy depends very much on whether there will be a second wave of virus infections. Another factor is whether the EU and the UK will manage to conclude a post-Brexit trade agreement in the coming months. A cautious recovery of the economy is expected in the rest of the year. “As a result, volumes in the port will not decline further but there will probably be no full recovery of volumes. The total throughput volume for the whole of 2020 is therefore currently expected to be significantly lower than in 2019,” the port authority added.

Source: offshore-energy.biz