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111.7 million tons of freight handled in Q1 2023, down 1.5% y-o-y, as container volume contracts 11.6% to 3.2 million TEUs due to Western sanctions eliminating Russian cargoes for invading Ukraine
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The Port of Rotterdam Authority, operator of Europe’s largest port, also blames high inflation and a weakening global economy for the soft demand for shipping
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Imports from Asia drop 14.2% in TEU terms as demand for physical goods dips
Port of Rotterdam has begun feeling the impact of Western economic sanctions on Russia for invading Ukraine with container throughput down 11.6% to 3.2 million TEUs, causing in freight tonnage terms a slight 1.5% Q1 volumes dip as cargo to and from Russia were eliminated.
For the first quarter, the port handled 111.7 million tons of container and breakbulk freight, less than the 113.4 million tons a year ago, that was also due to high inflation and weak demand, the Port of Rotterdam Authority said in a statement on April 24.
The fall mainly concerned the throughput of containers and freight in the breakbulk segment (roll-on/roll-off and other general cargo). Throughput in the mineral oil products, crude oil, LNG, iron ore & scrap, agribulk and coal segments increased.
As the Ukraine war only began in late February, the impact on throughput volumes in the first quarter of last year was still limited. In the past, these volumes accounted for 8% of total container throughput at Europe’s largest port.
Imports from Asia tumbled 14.2% in TEUs as demand for physical goods shrank due to accumulated stocks and inflation. Despite the strong improvement in chain performance, no transhipment has been recovered yet in the first quarter. These volumes have moved to smaller ports due to congestion during the pandemic.
“As expected, the year 2023 started with a slight decline in throughput. Especially in the container segment, we faced a decline in volumes due to high inflation and a weakening economy,” said Allard Castelein, chief executive of the Port of Rotterdam Authority in a statement on April 24.
“Results in other segments mainly show growth and confirm that dependence on Russian energy flows has been further reduced in line with the sanctions,” Castelein added.
For the remainder of the year, he said the port expects a limited dip in volumes due to the uncertainties posed by the current geopolitical situation and high inflation.
In the first quarter, liquid bulk throughput grew 5.6% to 54.3 million tons. Within this market segment, crude oil supply increased 0.8 million tons, up 3.2% to 26.3 million tons, as the US, West Africa and the Middle East supplied more crude to replace sanctioned Russian oil.
Liquefied natural gas throughput surged 14.3% to 3 million tons in the first quarter due to high European gas price and more spot cargo having been shipped during the period. The LNG supply growth comes mainly from the US as an alternative to reduced European imports of Russian gas by pipeline.
Dry bulk cargo grew 0.2% to 17.9 million tons in the first quarter, mainly comprising iron ore & scrap and coal. Throughput of iron ore & scrap rose 10.1% to 6.2 million tons.
Total throughput in the breakbulk segment (roll-on/roll-off and other general cargo) fell 6.0% to 7.9 million tons. Ro-ro traffic fell 2.2% year on year to 6.6 million tons due to lower demand from the UK as its economy performed moderately.
Other general cargo volume dropped 20.9% to 1.4 tons mainly because cargo shifted back to the container segment due to lower container rates.
