Monday, October 25, 2010

DP World: Shipping Back to Pre-Recession Levels

Dubai-based DP World is one of the world's largest marine terminal operators, with 50 terminals and 11 new developments and major expansions across 31 countries.  From its latest report:

"Global marine terminal operator DP World announced it handled 13 million TEUs (20-foot equivalent container units) in the third quarter of the year, an increase of 14% against the same period last year, and a 15% increase for the first nine months of the year to 36.7 million against the comparable period last year. 

DP World continues to handle container volumes ahead of the levels reported in 2008 reflecting how resilient our portfolio was to the global declines in 2009. Volume growth in the third quarter has been driven by strong growth in the Asia Pacific, Americas and Australia regions as well as a continuation of returning volumes across Europe and a stabilization of volume growth in the UAE."


At 10/25/2010 8:17 PM, Blogger juandos said...

O.K. so how does one determine what part the United States portion of these increased shipping levels are?

At 10/26/2010 5:59 AM, Blogger James Fraasch said...

I work in the rail industry. Thought I would throw out some quick facts.

Remember that 2009 was a pretty crappy year for rail traffic.

For US Railroads:
Coal shipments are -.7% behind last year. Coal is by FAR the most widely trafficked commodity on rail. It more than doubles any other item.

Ore shipments are ahead by 86.6%
Minerals (non-metal) ahead by 13%
Metals ahead by 56.7%
Autos ahead by 31%
Grain ahead by 12%
Chemicals ahead by 10.6%

In order of volume:
Coal 4,507,694
Chemicals 1,012,050
Grain 744,681
Autos 418473

This is from this month's issue of Progressive Railroading.

On the same page it says that at this point last year we had 11,787,556 carloads compared to us having 12,961,920 thus far in 2010. A 10% increase.

The railroad with the largest increase in traffic is Norfolk Southern with a 14.8% increase over last year.

That's some pretty good numbers. Much better than I expected.

As an aside, what do you think cap and trade would mean for you wallet? And then, given the numbers above, what would it mean for the railroad industry if the use of coal was curtailed. That's a lot of jobs folks.


At 10/26/2010 7:53 AM, Blogger James Fraasch said...

Juandos good question.

Based on rail traffic we can figure out generally speaking where the increase was.

For instance Union Pacific only operates west of the Mississippi and up to Chicago.

Kansas City Southern and BNSF take up the rest of the western routes.

CSX and Norfolk Southern take care of the east of the Mississippi routes.

For the % Change in Traffic from 2009:
CSX 2011886 +3.8%
Norfolk Southern 1842384 +14.8%
EAST TOTAL 3854270 +8.8%

BNSF 2925987 +5.9%
Union Pacific 2792750 +6.4%
Kansas City Southern 201776 +2.3%
WEST TOTAL 5920513 +6.0%

More overall traffic in the west but a great % increase in the East.

BTW, the worst increase for the two Canadian and two Mexican lines is 17.5%.

At 10/26/2010 8:55 AM, Blogger juandos said...

Thanks James Fraasch for that info...

You've given me something to work with...

Much appreciated...


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