Container Shipping Lines Are Raising the Bar
As global trade slows, container terminals are facing increasing pressure. Terminal rates are under strain, driven by the growing cooperation and alliance formation among container shipping lines. While Rotterdam remains a strong performer, shipping companies are increasingly shifting to Value Based Contracting, requiring terminals to remain highly competitive and responsive.
Need for Greater Efficiency
The container shipping industry is plagued by historically low freight rates, caused by structural overcapacity. The deployment of ever-larger vessels has led to intense peak loads at terminals. Shipping lines prefer ports that offer the lowest overall cost, which means terminals must boost efficiency, particularly through advanced IT solutions and automation.
Seeking Cargo Beyond Own Affiliates
Ports with:
High operational efficiency
Unrestricted nautical access for the largest vessels
Strategic locations
…are most likely to thrive.
While Rotterdam leads in innovation, ports like Hamburg and Antwerp are struggling due to limited accessibility. With new alliances in place, cargo flows are being re-evaluated, and terminals must actively compete for volumes, not only from their parent companies but also from other carriers.
Value Based Contracting in Practice
APM Terminals, a subsidiary of A.P. Moller-Maersk, operates 72 terminals worldwide, including two in the Port of Rotterdam. The newest terminal on Maasvlakte 2, while highly automated, still suffers from software issues, limiting full functionality. These problems need urgent resolution.
Under Value Based Contracting, carriers reward terminals based on performance metrics—for instance, if a terminal meets or exceeds pre-agreed container handling targets, it is rewarded. If it falls short, penalties apply. This creates more flexible, performance-driven contracts, placing additional pressure on terminals to deliver predictable, high-volume throughput.