Global Container Ports: The shares to watch

Drewry Maritime Equity Research reported a positive view on the global port sector thanks to an improved outlook for a global economic recovery, driven by areas of favorable supply/demand dynamics.

Container trade will grow by 4.7% this year and 5.7% next year, reaching 684 million TEU by the end of next year, according to the latest forecasts from Drewry. Port capacity is only expected reach 994 million TEU by 2014 increasing at a CAGR of 3.9% since 2011, which will nudge average utilization up to 69% in 2014 from 67% in 2011.

However, there will be wide regional variations, leading to very different utilization levels across geographies. Emerging regions such as Far East and South East Asia will see much higher average utilization of around 75% next year, while muted demand in Western Europe will keep the average down at 57%. This was certainly the case in early 2013. < Korea Shipping Gazette >