How can logistics service providers profit from the emerging ports?

Groeiende havens | Boltrics

How can logistics service providers profit from the emerging ports?

No background information? Go directly to how you can profit from the emerging ports!

Lately, many positive news items were published concerning the achievements of the ports in the lowlands. For example, the Port of Rotterdam noted a record transfer in the first semester. Also, the Port of Antwerp booked the best quarter of its history in the second quarter of 2019. And besides that, a few smaller ports in the Netherlands experienced a severe growth in the last period. What is this like in your country? And can you profit from the boost of these emerging ports? If so, are you ready to grow along?

The emerging ports in (record) numbers

In this chapter, we will shortly discuss how much growth we are talking about. Firstly, we will elaborate on Rotterdam. This harbor processed 4.8 percent more containers and 2.8 percent more raw oil. Besides, the amount of liquid natural gas grew with 94%. To get an image of how many goods we are talking about: in April 2019, the Port of Rotterdam transferred 13.6 million tons of container cargo.

Port of Antwerp breaks records consecutively

Secondly, the Port of Antwerp. Here the container traffic established a new record in April, which got directly beaten the month after. The increase was 4.9% in the first semester. At the same time, dry bulk reached a peak in the second quarter; a stunning growth of 8.7%. But we must put this in perspective, since dry bulk is usually characterized by high volatility.

Realize transferring goods yourself?

Transferring goods is not limited to the ports. Many warehouses offer this service as well and they call it Cross-docking. Would you like to add this service to your portfolio too? Read all about it in the blog about our Cross-docking module.

 

What is the causation of the emerging ports?

Several reasons are mentioned for the emerging ports. If you think that the growth in Rotterdam is due to goods coming from and going to China, you are wrong. Because lately, this traffic has shown a decrease. According to the port itself, they thank the growth mainly to import of cheaper American oil and American export of oil and LNG (liquified natural gas) to Europe.

Port of Antwerp goes Oriental

In Antwerp, the biggest growth was regarding the transfers from and to the Far East. More specifically, the Port of Antwerp recorded an increase of 11.7 percent to this area. But the growth did not limit itself to the Far East, there was more traffic to all sailing areas, except South-America.

North Sea Port profits from booming sectors

I would like to highlight the causation of these ports, since these are not area-related, but more market related. The North Sea Port realized an increase thanks to the booming construction and agricultural sectors. The growing construction sector resulted in more delivery of sand, gravel and building materials, whereas the agricultural sector boosted the transfer of silage, for example.

Are you already in contact with the emerging ports?

Just like in every good relation, good communication is key. And good communication with ports or customs is digital. Did you already establish connections? Get started right away.

 

How can logistics service providers profit from the emerging ports?

The ports in the lowlands keep on growing and possibly the same applies to your local port. The Port of Antwerp recently received a green light for a major capacity expansion. And the largest container port of Europe, Rotterdam, strives to maintaining this position. How can you, as a logistics service provider, profit of the objectives of these (and other) ports? We will mention some points of attention below.

Digital transformation is key

Firstly, make sure that you are fully digital. The Port of Rotterdam is leading in digital infrastructure with logistics solutions. You might be familiar with videos of the harbor, where during an entire logistics procedure, no human is involved. For these kind of processes, smart digital communication is required and the same cleverness is what the Port of Rotterdam expects from their partners. Make sure that your API and EDI are well designed and comply to the high demands of the bigger ports.

Focus and specialize

Secondly, try to be the best in one specific area. As you have read in this story, there are several product groups per port that caused a severe increase of business. Think about the American fuels in Rotterdam and the construction market that influenced the North Sea Port. By specialization you can become the party to go to for one of these product groups. Another focus area could be a specific country or region, for which you can function as an expeditor. Make sure that besides a focus group, you still offer a wide range of services; you do not want to depend on temporary trends too much.

Streamline your customs processes

Finally, we suggest you streamline your customs processes. Because these processes are usually repetitive, they are easy to automate. Think about classifying your goods or reporting to your customs agency. If you adjusts your processes to customs, you can get more done in a shorter time. And thus profit from the increasing activity in the emerging ports.

Are you ready for the increasing ocean freight?

Have you streamlined your customs procedures? Or did you succeed in optimizing your digital communication flows? With a steady basis, you are the one to grow along with the ports in the lowlands, or with the ones in your own country. Do you need help? Then do not worry. Please contact us, we are happy to think along.

Luc Ligtenbelt
Posted by
Luc Ligtenbelt