Page 34 - MMC Ports Newsletter

MALAYSIAN PORT LOGISTICS
ON THE
HORIZON
SAILING AHEAD –
OUR FORECAST FOR 2022
2021 has been a challenging year for many of
our ports, especially with the pandemic season
presenting a variety of logistical challenges for us
to overcome. However, 2021 was also a year where
we have made further strides, with many ports
achieving greater feats and soaring to greater
heights.
With that said, there are many new tidings in terms
of the industry trends that we expect for the rest of
2022 and beyond.
FORECAST
For the general port and maritime industry,
the World Bank has forecasted a GDP growth of
4.1% in 2022. These numbers reflect continued
COVID-19 flare-ups, diminished fiscal support,
and lingering supply bottlenecks. The near-term
outlook for global growth is somewhat weaker,
and for global inflation notably higher,
than previously envisioned. This is owed to a
resurgence of the pandemic, higher food and
energy prices, and more pernicious supply
disruptions.
The Malaysian freight and logistics market is
expected to register a Compound Annual Growth
Rate (“CAGR”) of more than 4% during the
forecast period (2022 - 2027).
2021 has been a challenging year in terms of
space allocation on a container ship due to delays
causing the transport capacity to decrease.
This issue is forecasted to change for the better
in 2022, as it will be easier to secure a place
for a container due to an increased number of
shipping spots. It is also estimated that
containerised exports will increase.
For 2022, we expect an increase in additional
shipping spots, containers for hire, and ships,
although we also still continue to expect
port congestion issues and rising fuel prices.
We will probably not see freight rates at the 2019
level, but they will eventually stabilise.