WASHINGTON: Reflecting the nature of its ports, terminal operator HPH Trust saw throughput for the first nine months drop 7% from the previous corresponding period. Throughput at the operator’s main port in Shenzhen, Yantian International Container Terminal (YICT) fell 4% and combined throughput of at the Hong Kong terminals of HIT, COSCO-HIT and ACT dropped by 11% year-on-year, HPH Trust said in a press release. On individual trade lanes, outbound cargoes to the US and EU increased in the first nine months of the year. However, even though US trade rebounded in the third quarter on a quarter-on-quarter basis, EU trade recovery slowed down during the same period.
YICT reported a throughput drop in the first nine months of 2016 due to decreased empties and transhipment cargoes. HIT’s throughput decrease was mainly the result of weaker intra-Asia trade and transshipment cargoes, HPH Trust noted. It also blamed falls on structural changes occurring in the container shipping industry. For example, the service rationalisation of various global shipping alliances has negatively impacted the transshipment volume of both HIT and YICT over the past few quarters, HPH Trust said. As a result, revenue and other income fell 7% to HKD8.95bn ($1.15bn) from HKD9.58bn in the previous corresponding period.
Net profit for the first nine months came up to HKD1.33bn, up 10% from HKD1.21bn in the previous corresponding period. Looking ahead, the trust said: “Given the soft global trade outlook, management remains cautious on the expected cargo volume for 2016 and will continue to focus on improvements to costs.”
