Cargo owners, rather than shippers and port operators, have become the drivers of port choice, according to a shipping analyst.
President of GHK Consultants Jamie Simpson said that shipping lines and port operators were “dancing to the tune” of cargo owners.
“Port operators have less control over their customers, and the lines need to balance their own requirements with the needs of their customers,” he was quoted as saying.
“Shipping lines want fast turnaround times and high load factors, while cargo owners want connectivity and frequency of services. The cargo owners are now driving choice of port and the decision on which port is used is very cost sensitive.”
Simpson pointed to Hong Kong's dampened growth over the last few years as an example.
He said Hong Kong's share of direct cargo had declined over the last decade as cargo owners began using Shenzhen instead.
“Hong Kong may be the most efficient port in the world but it cannot manage its transport costs, specifically the cost of trucking an export container across the border from the factory to Kwai Tsing (Hong Kong). The port doesn't provide the service advantage to justify the extra cost of shipping out a box,” said Simpson.
Shenzhen recently consolidated its position as the fourth busiest container port in the world just behind third-placed Hong Kong. Industry sources expect Shenzhen to overtake Hong Kong in a year or two.
President of GHK Consultants Jamie Simpson said that shipping lines and port operators were “dancing to the tune” of cargo owners.
“Port operators have less control over their customers, and the lines need to balance their own requirements with the needs of their customers,” he was quoted as saying.
“Shipping lines want fast turnaround times and high load factors, while cargo owners want connectivity and frequency of services. The cargo owners are now driving choice of port and the decision on which port is used is very cost sensitive.”
Simpson pointed to Hong Kong's dampened growth over the last few years as an example.
He said Hong Kong's share of direct cargo had declined over the last decade as cargo owners began using Shenzhen instead.
“Hong Kong may be the most efficient port in the world but it cannot manage its transport costs, specifically the cost of trucking an export container across the border from the factory to Kwai Tsing (Hong Kong). The port doesn't provide the service advantage to justify the extra cost of shipping out a box,” said Simpson.
Shenzhen recently consolidated its position as the fourth busiest container port in the world just behind third-placed Hong Kong. Industry sources expect Shenzhen to overtake Hong Kong in a year or two.