Trend Spotting: Volumes are Increasingly Consolidating into Larger Ports

During the past year, total Swedish imports have fallen by as much as 25% and more and more goods are being consolidated at larger ports, as shipping companies are finding ports with an abundance of exports.

The volatile economy means that people are keeping a tight grip on their wallets, which continues to affect the container market. During the first six months of the year, the total Swedish container market fell by 4.5%, corresponding to 36,200 TEU, compared with the same period last year. Most distinctively, container imports have fallen by as much as 25%, corresponding to 75 500 TEU.

“The fall in the total amount of loaded and unloaded goods in Sweden equals the total container turnover of the fifth largest Swedish port during the same period,” says Per Wahlström, market analyst at APM Terminals Gothenburg. He continues:

"Export volumes have remained unchanged during the period, but we are seeing a clear shift in which the forestry products segment is increasing sharply, while other export segments are declining."

APM Terminals in Gothenburg – the hub for Swedish forest exports

Although import volumes are slowly recovering, it is clear that shipping companies are seeking ports that can replace the lost import volumes with other cargoes. In the Swedish market, forestry products and basic industrial goods are currently the main cargo on board ships," Per Wahlström states.

"At APM Terminals in Gothenburg, exports of forest products increased by 8.5% during the first half of 2023. With the strangulation of Russian forest exports, Swedish forest products are more sought-after than ever on the global market, especially at a time when plastic packaging is largely being replaced by paper packaging," he explains and continues:

"Thanks to short lead times and major environmental benefits, the forestry industry has chosen to use Gothenburg as the hub for its exports. This makes APM Terminals a very interesting port for shipping companies."

Shipping companies looking over their routes

The global container market is also on a downward trend, while shipping companies are facing overcapacity due to the impending delivery of new, significantly larger container vessels. This increased capacity provides shipping companies with two strategic alternatives. The first is to integrate an extra vessel into existing routes, which enables lower speeds and thereby a reduced impact on the environment. The second is to include additional ports on their routes.

"We are currently seeing intense activity among shipping companies in which they are carefully evaluating and adapting their loops. There is a clear trend towards consolidation. Shipping companies tend to be focussing on larger ports, both in Sweden and globally. This is partly due to the availability of cargo and partly to transitioning from smaller to larger vessels, which are often too large to call in small ports," Wahlström concludes.