DP World reaches 19.5 million TEUs in Q1 2023

While global shipping operations are returning to stability, DP World is making the most of its network reach and investing in capacity to achieve higher growth.

DP World - Dubai-based port operator and management company - handled 19.5 million TEUs (20 foot container equivalent units) on their global network in the first three months of 2023, thanks to operations better performance from operations in India and Asia-Pacific. This also helps offset the decline in profits from Europe and America.

Jebel Ali Port in Dubai handled 3.5 million TEUs during the period, up 2.3% year-on-year.

"Our portfolio has had an encouraging start to the year with container volume growth of 3.7 per cent - once again ahead of the market, which is estimated to be down by 6.3 per cent", said Sultan Ahmed Bin Sulayem, Chairman and CEO of the Group. "This outperformance continues to demonstrate that we are in the right locations, and our strategy to offer integrated supply chain solutions to beneficial cargo owners is driving value for our stakeholders."

Decline in major markets
 

Shipping volumes out of Europe are still low, which has led to a decrease in the Dubai company's total handling volume. The short-term forecasts for the eurozone economy have been revised, which could indicate a further decline in import demand for the rest of the year.

As for the numbers for Q1 2023, 'As anticipated, volume growth has softened in some regions, such as Europe and the Americas, due to uncertain economic conditions', said Bin Sulayem. "A strong performance in Asia-Pacific and India drove our growth." Shipping industry sources concurred, pointing to a rapid return of better growth for the Chinese economy after a full reopening.

Freight rates have also been reduced compared to the peak of Covid, which will also benefit DP World's output. The biggest takeaway from the Q1-2023 numbers is that even with the low numbers in Europe, the company was able to beat general industry patterns.

“We expect our portfolio to deliver a stable performance as we remain focused on driving revenue synergies from our recent acquisitions while managing costs and growth capex,” said Bin Sulayem.

"The near-term outlook remains somewhat uncertain, given the geopolitical backdrop, high inflation and currency fluctuations." - Sultan Ahmed Bin Sulayem of DP World

See more:

• Major ports in China achieve nearly 70 million TEUs in Q1 2023
   

Source: Phaata.com (According to DP World, GulfNews)

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