Advertisement
|25 April, 2019

DP World's Q1 shipping container volumes fall in UAE, flat globally

DP World operates 78 marine and inland terminals, supported by over 50 related businesses in over 40 countries

FILE PHOTO: A terminal tractor passes in front of a stock yard of DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, United Arab Emirates, December 27, 2018. Picture taken December 27, 2018.

FILE PHOTO: A terminal tractor passes in front of a stock yard of DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, United Arab Emirates, December 27, 2018. Picture taken December 27, 2018.

REUTERS/Hamad I Mohammed/File Photo

DUBAI: Ports operator DP World on Thursday reported a sharp drop in shipping container volumes in the United Arab Emirates in the first quarter of 2019 and flat growth globally.

DP World operates 78 marine and inland terminals, supported by over 50 related businesses in over 40 countries.

Gross container volumes fell by 0.6 percent on a reported basis and gross like-for-like volumes declined by 0.7 percent, it said in a statement.

Advertisement

The Dubai-based company handled 3.5 million TEU (twenty-foot equivalent unit) in the UAE, down 8.8 percent due "to the challenging macro environment and loss of lower-margin cargo", it said.

It handled 17.5 million TEUs globally, similar to volumes a year earlier.

Consolidated volumes, at terminals over which DP World has control, fell 3 percent on a like-for-like basis to 9.2 million TEUs, it said.

The company saw softer volumes "due to a strong prior-year performance and general caution in some markets given the current uncertainty in the macro environment," DP World Group chairman and chief executive Sultan bin Sulayem said.

In the UAE, volume weakness was mainly due to a loss of low-margin throughput as it focuses on profitable cargo, he said.

"While we expect the recent trends to continue into the second quarter, we do expect an improvement in the second half of the year," he said.

(Reporting by Stanley Carvalho, editing by Hadeel Al Sayegh and Jason Neely)

More From Business