Global unrest, weak economies dampened Rotterdam port's transhipment

Transshipment in the port of Rotterdam fell by more than 6 percent last year due to geopolitical tensions, low economic growth, and high inflation. Recently, many ships from Asia have stopped sailing through the Red Sea and the Suez Canal due to attacks by Houthi rebels forcing them to detour. As a result, ships arrive later in the port of Rotterdam.

The Rotterdam port processed significantly less coal and containers, among other things, last year, the Port of Rotterdam Authority said on Tuesday. The transshipment of liquefied natural gas (LNG), agricultural bulk, and iron ore increased. A total of 438.8 million tons of goods were handled in the port, compared to 467.4 million tons in 2022.

The port processed almost 7 percent fewer containers than a year earlier. Container transshipment has proven to be very volatile due to the coronavirus period and geopolitical developments, the port authority said. A decline already started in 2022 and continued last year. The main reasons for the decreased container throughput are lower consumption, lower production in Europe, and the loss of volumes to and from Russia due to sanctions.

The impact of the situation on the Red Sea on total transshipment will likely be limited, the port authority said at the end of December. The expectation at the time was that transshipment figures would be approximately 1.25 million tons lower because the delay affected transshipment around the turn of the year. That would, in turn, benefit the 2024 figures. The ships were expected to continue to their destination.

“The year 2023 was characterized by continuous geopolitical unrest, low economic growth due to higher interest rates, and faltering world trade,” said CEO Boudewijn Siemons. “This has had a logical effect on transshipment in the port of Rotterdam.”

However, the supply of LNG increased because Europe continues to import a lot of liquefied natural gas to replace Russian gas delivered through pipes. Fifty percent more corn was also imported because farmers in Europe suffered crop failures last year due to drought and floods. Coal throughput decreased by about a fifth, mainly due to low demand for coal for power production. Demand for coal rose sharply in 2022 due to concerns about energy security and sharply rising gas prices.