Business, Freight News, Sea

Drewry Container Port Index Surges 8.6%

[ May 23, 2024   //   ]

Drewry’s May Port Equity Index improved 8.6 percent in the first quarter 2024, ended May 8, compared to a 1.3 percent decline recorded by the S&P 500.
This increase was largely due to a 12.1 percent surge in stock prices of global terminal operators, or GTOs, and a 3 percent increase recorded by regional terminal operators, or RTOs.
Consequently, the year-to-date return of the Drewry Port Equity Index rose 14.1 percent, outperforming the run-up of 8.8 percent recorded by the S&P 500. Over the same time, GTOs surged 19.6 percent compared to a rise of 6.0 percent recorded by RTOs.
In the U.S., a decelerating economy alongside inflation exceeding the Federal Reserve’s preferred range has prompted speculation regarding a potential shift in the timing of interest rate cuts to the latter half of 2024. Conversely, the Euro Zone’s struggling economy coupled with stable inflation, could lead to interest rate reduction by the European Central Bank at its upcoming meeting in June 2024, Drewry said.
In February, the Drewry Global Container Port Throughput Index declined 0.8 percent month-over-month due to a substantial 13.3 percent decrease in China volumes, though it was counterbalanced by high volumes in all other regions. Notably, the Middle East and South Asia, along with Europe and Africa, exhibited double-digit growth figures. However, on a year-to-year basis, the container port index rose 8.3 percent, fueled by growth across all regions, including China, where volumes increased 5.3 percent.
As of mid-May, three major ports and terminal operators published their first quarter 2024 results. APMT volume increased 9 percent, driven by a 29.2 percent year-over-year surge in North America. Revenue jumped 14 percent to US$999 million, with EBITDA rising 19.6 percent to US$348 million.
Westports observed 4.7 percent growth in container throughput, with revenue from the container segment climbing 8 percent to US$99.5 million. Overall, adjusted EBITDA increased 10.1 percent, leading to an adjusted EBITDA margin expansion of 61.5 percent.
COSCO Shipping Ports Ltd. reported a 9.8 percent gross throughput rise, with revenue increasing 1.4 percent to US$332.7 million, but adjusted EBIT declined 1.9 percent to US$47.7 million.

As of mid-May, three major ports and terminal operators saw increased first quarter 2024 results. PHOTO: Vecteezy