DP World's first half container volumes down 10pc

DUBAI's DP World has suffered a 10 per cent decline in total container cargo at its ports in the first half of the year, amounting to an aggregate volume of 12.3 million TEU.

"The first six months of 2009 have seen some of the most challenging operating environments our industry has ever known," said DP World CEO Mohammed Sharaf, according to The Associated Press report.

Mr Sharaf is predicting "an inevitable decline" in first-half profit on the back of the decline in business despite cost-cutting measures. Yet he forecasts full-year results will meet expectations. "The unpredictable trends in global trade we have seen in the first half of the year continue into the second half of the year," he said.

The report noted that the company's largest revenues came from Dubai's Jebel Ali port and other smaller ports in the United Arab Emirates. DP World said business at ports in the UAE had fallen seven per cent in the first six months of the year.

But the results were better than expected, with London's Drewry Shipping Consultants forecasting that ports globally will experience container throughput declines in the first half of 14.2 per cent, and a drop of about 10 per cent for the full year.

"Without a doubt, 2009 will be the worst year the container industry has ever seen," said Neil Davidson, Drewry's ports director, adding that he did not expect freight volumes to return to 2008 levels until at least 2012.

(Source: www.schednet.com)