Insights by Auba (Nov 14th): Port Performance by Country
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Everything you Need to Know About Port Performance
Port performance is a crucial metric to international trade. Through it, operators are able to determine which ports and countries are better prepared to handle their cargo. However, in spite of the great importance of port performance, it is difficult to find reliable data on the matter. In this article, we tackle the problem head on and use a recent dataset published by the World Bank to outline the most efficient countries when it comes to port management and why such a metric matters to the world.
In particular, we used the World Bank’s Logistics Performance Index (LPI) which addresses this issue by providing a dataset that scores countries based on logistics indicators like customs efficiency, infrastructure, and timeliness.
With an average global score of 3.0 in 2023, the data shows a steady improvement since 2007, when the average was 2.74. Top performers like Singapore, Finland, and Denmark stand out, while less developed nations like Somalia and Haiti rank significantly lower.
Most importantly, it allows us to map out port performance in a geographical, as the map below shows:
By looking at LPI data, we are able notice a number of regional clusters of high efficiency in Europe and Asia, reflecting economic development and trade priorities.
However, over time, there have been shifts in rankings highlight significant improvements in countries like Denmark and Finland, which rose dramatically in the standings.
The Week in Short
???? Mexico’s top container port, Manzanillo, will undergo a massive expansion to quadruple its size and add four new terminals, as announced by President Claudia Sheinbaum. The $3.13 billion project, expected to be completed by 2030, aims to boost capacity to over 10 million TEUs annually and elevate the port into the top 15 global gateways, addressing congestion caused by growing near-shoring activity (more on Supply Chain Dive ).??
???? Donald Trump’s election victory is expected to accelerate shifts in global trade patterns, with Chinese manufacturers increasing "strategic inventories" in various regions to avoid high US tariffs, which could reach 100% on some products. This strategy has driven record demand and capacity growth on Far East to East Coast South America routes, with volumes up 14.8% year-on-year and spot rates fluctuating between $4,000 and $10,000 per FEU in 2024 (more on Sea Trade Maritime ).
?? The Port of Los Angeles achieved record container volumes in October, handling 905,025 TEUs—a 25% increase year-on-year—marking its fourth consecutive month above 900,000 TEUs. Container dwell times improved significantly, with rail-bound containers waiting nine days or longer dropping from 9,000 to 2,300 in recent weeks? (more on Freight Waves ).
?? Container lines achieved $26.8 billion in net profits in Q3 2024, marking a 164% quarter-over-quarter increase and more than eight times the $2.8 billion earned in Q3 2023, driven by 4.7% global volume growth and shipping disruptions in the Red Sea. While profit margins averaged 28%, European carriers lagged behind non-European competitors (more on Sea Trade Maritime ).?
?? Third-party logistics providers (3PLs) have driven a 9% year-over-year increase in bulk warehouse leases of 100,000+ square feet, with 498 deals through Q3 2024, according to CBRE. Their growing share of 34.1% in industrial leasing is attributed to retailers outsourcing for cost flexibility, and 3PLs’ strategic presence in key markets like California's Inland Empire and Pennsylvania's I-78/81 corridor (more on Supply Chain Dive ).
?? The air cargo market is experiencing a strong but stable Q4, with spot rates up 10% out of Europe in week 46, including a 36% rise on Europe-South America lanes and a 48% increase on Europe-US transatlantic routes over five weeks. Rates are 20-25% higher than last year, reflecting better preparation by shippers and freight forwarders (more on Load Star ).??
That is all for this week, but make sure to follow Auba to stay up to date on all things supply chain and logistics