Corona Measures Shape Cargo Handling Results of the Port of Hamburg

The seaborne cargo handling in the Port of Hamburg developed more positively than expected in the fourth quarter of 2020. This upward trend has been noticeable since the third quarter. The seaborne cargo handling in the fourth quarter even increased by around three percent compared to the same quarter of the previous year. The container handling was only 1.2 percent below the comparable previous year’s value. Overall, however, the cargo handling result for the entire year 2020 remained at 126.3 million tons (-7.6 percent), below the good previous year’s value of 136.6 million tons.

(Hamburg) The globally noticeable effects of the Corona pandemic hit the Port of Hamburg particularly hard in the first half of 2020. “The first six months were characterized by the shutdown of many economic sectors, weaker consumer demand, and a reduction in scheduled service departures. This led to a double-digit decline in handling in Hamburg. We are pleased that during the second half of the year, the turnaround in handling began, and the overall result for 2020 shows only a single-digit minus,” explains Axel Mattern, board member of Hafen Hamburg Marketing e.V. (HHM).

For Ingo Egloff, board colleague of Axel Mattern, the year 2020 was a special challenge for the entire port. “It was a joint effort to keep the port with its handling terminals, logistics and service companies, as well as transport connections with the hinterland fully operational throughout the period. My thanks go to all the people who work along global transport chains and in the Port of Hamburg under difficult conditions with great commitment 24/7. Ship crews, specialists in handling and logistics, pilots, and all others involved in port handling in companies, authorities, or organizations contribute daily to the secure supply of people and the economy,” emphasizes Egloff.

Seaborne Cargo Handling in the Port of Hamburg in 2020

In the entire year 2020, 126.3 million tons of seaborne goods were loaded or unloaded at the terminals in the Port of Hamburg. This represents a decline of 7.6 percent compared to the good previous year’s result. Both the general cargo handling, which showed a decline of 7.9 percent with 87.8 million tons, and the bulk cargo handling with 38.5 million tons (-6.7 percent) were affected. In the container handling segment, a total of 8.5 million TEU (20-foot standard containers) were handled in Hamburg in 2020. Compared to the previous year, this is a decline of 7.9 percent. “It is interesting that in Hamburg, overall, imports with 4.4 million TEU (-7.8 percent) and exports with 4.2 million TEU (-8.2 percent) developed at almost the same level. The sharply declining imports from Asia in the first half of the year are one reason for this. It is also interesting that the land-side hinterland traffic developed very stably and only shows a decline of 5.8 percent. The transshipment handling fell with a decline of 11.6 percent,” says Mattern.

Within the bulk cargo segment, the handling of suction goods developed positively with a total of 7.5 million tons, achieving an increase of 19.7 percent. This growth was particularly driven by the export of grain, which led to a very good result in the agribulk sector with 2.2 million tons (+198.6 percent). Another factor was an increase of 6.8 percent in the import of a total of 3.2 million tons of oilseeds.

In the case of grab cargo, there were declines in imports of coal/coke (-35 percent/4.7 million tons) and ores (-4.4 percent/9.5 million tons) due to reduced steel production and less coal-fired power generation. Overall, 19.4 million tons (-13.2 percent) of grab cargo were handled in Hamburg.

In the liquid cargo segment, the handling in 2020 totaled 11.6 million tons (-8.4 percent). Fewer imports of mineral oil products and other liquid cargoes are primarily responsible for the decline. Export increases of 15.7 percent in the area of “other liquid cargoes,” which include biofuels, could not fully compensate for the reductions.

The Top 10 Trade Areas of Hamburg Developed Differently

In the container handling of the ten most important trading partners of the Port of Hamburg, the development in 2020 was very varied. In particular, the decline in seaborne container handling with China (-8.2 percent), Hamburg’s most important trading partner by far, could not be offset by positive developments with other countries. Additionally, besides China, Russia (-12.7 percent), Sweden (-8.6 percent), South Korea (-10.4 percent), Brazil (-11.1 percent), and Poland (-7.3 percent) also show partly double-digit declines in seaborne container handling.

Among the trading partners with an increase in container traffic, the top 10 of the Port of Hamburg include the USA (+1.8 percent), Singapore (+5.3 percent), the United Kingdom (+28.2 percent), and Malaysia (+6.0 percent). For the USA, which ranks second in the container partner ranking of Hamburg, a record result of 591,000 TEU was achieved in 2020. “The consistently positive container traffic development with the USA is surprising against the backdrop of the economic performance affected by Corona and declining demand there. The positive development in container traffic with the United Kingdom rises to a record volume of 266,000 TEU and is attributed to increased transport for the German market and intensified deliveries to the UK before Brexit,” explains Ingo Egloff.

Second Best Result for the Hamburg Port Railway

Hamburg’s seaport hinterland traffic by rail showed a largely stable performance in 2020 with 46.6 million tons and 2.6 million TEU. The decline in containers transported by rail was significantly weaker at 4.4 percent compared to the decline in total container handling. “In terms of cargo volume, the third-best result was achieved in 2020, and in terms of transported containers, the second-best result in the history of the Hamburg Port Railway,” emphasizes Mattern. In seaport hinterland traffic, the rail share of the modal split was even increased to 50.7 percent (+1.3 percent).

Good Prospects for the Port through Investments and Favorable Regulations

Axel Mattern points out that both the Hamburg Port Authority (HPA) and the companies in the port have used the year to further expand and modernize the infrastructure and equip handling facilities with the latest technology. Thus, the terminal operators HHLA and EUROGATE invested in additional container bridges for the handling facilities at Waltershofer Hafen. The container terminals in Hamburg are therefore well prepared for the processing of large container ships, which can now also reach the port more easily. “The adjustment of the fairway, which is important for Hamburg, has recently overcome the last hurdle, albeit late. The trend towards larger ships, which is also confirmed in discussions with shipping companies, continues, and the completed meeting box in front of Hamburg now allows for the meeting of particularly large ships on the Elbe. This is a very good signal towards our port customers,” says Jens Meier, CEO of the Hamburg Port Authority.

Michael Westhagemann, Senator for Economic Affairs and Innovation of the Free and Hanseatic City of Hamburg, emphasizes: “In 2021, we will also complete the adjustment of the fairway of the Lower and Outer Elbe. This is an important and necessary signal to the international clientele of the port and an indispensable prerequisite to continue to play a role in the concert of the large European ports. The Port of Hamburg is one of the most important economic factors in all of Northern Germany and plays an extremely important role as a hub of international goods traffic for the entire economic system of Germany. It thus makes a significant and lasting contribution to social prosperity – both regionally and beyond.”

The HHM board also evaluates overarching measures, such as the suspension of the navigation fee for the North-East Sea Canal and the federally funded first shore power supply for container ships in a European port, as very positive signs. In Mattern’s view, these measures help to make the port future-proof and achieve climate protection goals. He also believes that inland and port shipping will benefit from the expansion of shore power supply.

Furthermore, since December 2020, importers can benefit from a new legal regulation. “Among the pleasing overarching measures, we also see the usable liquidity effect of the import sales tax. This arises from the temporal shift of the due date for the import sales tax and makes imports via German ports more attractive. This is an important step in the right direction,” says Mattern.

Outlook 2021

For the year 2021, the marketing organization of the Port of Hamburg expects a generally more stable course in seaborne cargo handling. With the resumption of suspended scheduled service departures and new services, a handling result of 130 million tons and 8.7 million TEU is achievable, hopefully with an improving global situation.

Photo © Falcon Crest Air / Graphics © Hafen Hamburg

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