China’s megaports strengthen grip on box trade

 China’s centrality to global trade was further emphasised in 2020 when its leading container hubs continued to record volume growth despite Covid-19 supply chain disruptions.

Chinese ports occupy six of the top eight spots in Alphaliner’s ranking of the world’s top 25 container ports by volume in 2020, although some of the country’s second-tier ports did see volumes slide.

The analyst calculates that Shanghai, which retained its position as the world’s largest box port in 2020 ahead of Singapore, saw volumes expand 0.5% last year, while the ports of Ningbo-Zhoushan, Shenzhen, Qingdao and Tianjin saw year-on-year throughput increases of 4.4%, 3%, 4.7% and 6.1%, respectively.

“With booming transpacific trade volumes, Qingdao moved up to sixth place during the year, while number one Shanghai pulled further ahead of its nearest competitor, Singapore, increasing its lead by nearly 10% to 6.7 million teu,” noted Alphaliner. Shanghai’s throughput rose to 43.5 million teu compared with Singapore’s 36.9 million teu, a drop of 0.9%.

Apart from China, Malaysia (Port Kelang and Tanjung Pelepas) and the US (Los Angeles/Long Beach and New York/Newark) were the only countries with more than one port in the top 25.

Overall growth across the 25 largest container ports in the world “was flat-to-slightly positive in 2020 despite the impact – both positive and negative – of COVID-19”, according to Alphaliner.

The top 25 container ports handled a combined 395.7 million TEU, a rise of 0.55% versus the 393.5 million recorded in 2019.

“Throughput increased for 13 ports on the list – seven in China and two in the US – reflecting strong western consumer appetite during the pandemic,” reported Alphaliner. 

Antwerp (1.4%), Tanjung Pelelas (8%) and Ho Chi Minh (an estimated 4.9%) recorded positive growth in 2020; but while Europe’s largest box, Rotterdam, retained 11 position in the top 25, its was estimated to have seen volumes contract 3.1%.

“Among the top 25 ports, Tanger Med recorded the highest overall growth at 20%,” said Alphaliner. “It has risen rapidly up the rankings since 2018 when it was placed 48 in terms of volume. 

“Conversely, notable losers during the year included Jakarta, Kaohsiung, Colombo and Laem Chabang; and, overall, 12 ports recorded a decline in volumes in 2020. 

“Hong Kong also slipped one position after volumes fell nearly 2%.” 

Antwerp added 170,000 TEU in volume during the year, a 1.4% increase in throughput, with the port retaining its 14 place ranking. “Apart from being a ‘fortress hub’ of the growth-hungry MSC, Antwerp in early 2020 profited from overflow volumes redirected from Le Havre, where labour unrest slowed down work for a number of weeks,” said Alphaliner.

“By contrast, Rotterdam saw an approximate 3% decline in volumes, with the final 2020 figure yet to be confirmed by the port authority.”

Dalian, meanwhile, was “arguably the big loser during the year”, slipping from 19 position in 2019 to 29 position in 2020, said Alphaliner. 

“It handled 5.1 million TEU in 2020 versus 8.6 million the previous year and was severely impacted by the rise of competitor ports elsewhere in the region,” said the analyst.

“Indeed, despite China’s larger ports consolidating their position, the country now has only nine ports in the Top 25 compared to eleven two years ago, and more mergers are planned to try and fight damaging competition between container hubs lower down the list. Management of Dalian and Yingkou ports was combined during 2020 as part of the effort to fight overcapacity.”