The geopolitical instability in the Red Sea has significantly affected container shipping routes, forcing vessels from Asia to navigate around Africa. Consequently, many ships are now approaching Cosco Port terminals in Spain and northern Europe instead of Greece’s largest port, Piraeus.
Impact on Piraeus Port
In May, Piraeus Port reported a notable decline in container handling due to reduced transits, although domestic cargo levels remained stable, maintaining profitability for the Piraeus Port Authority (PPA).
According to data from Cosco Shipping Ports, the Piraeus Container Terminal (PCT) managed 319,000 containers from piers II and III in May, a 24.1% decrease from the 420,000 handled in May 2023. From January to May 2024, container handling at piers II and III fell by 13.5% compared to the same period in 2023. Overall, 1.591 million TEUs were handled at these piers in the first five months of 2024, down from 1.840 million TEUs in the same period last year. Pier I, managed by PPA, also saw a 13% drop in container handling over the same period.
Cosco Shipping Ports Performance
Despite the challenges faced at Piraeus, Cosco Shipping Ports saw overall container traffic at its 36 controlled ports increase by 5.4% in May, reaching 9.6 million TEUs compared to 9.1 million TEUs in May 2023. From January to May 2024, these ports handled a total of 44.4 million TEUs, an 8% rise from the 41 million TEUs handled during the same period in 2023.
Cosco’s overseas terminals continued to show positive growth, with a year-on-year traffic increase of 1.9%. Notably, Cosco Shipping Ports (Spain) Terminals performed exceptionally well, with a 19.7% increase in traffic in May. The Spanish terminal handled 341,000 containers, up from 285,000 in May 2023.
Conclusion
The geopolitical crisis in the Red Sea has reshaped container shipping routes, impacting ports like Piraeus while benefiting others in Spain and northern Europe. As global shipping dynamics continue to evolve, ports and shipping companies must adapt to maintain efficiency and profitability.
Source: https://www.seatrade-maritime.com/ports/red-sea-diversions-hit-greece-container-volumes