Saudi Arabia Shipping Report Q1 2012
Includes 3 FREE quarterly updates
The outlook for Saudi Arabia is currently a strong one. The country has benefited from elevated oil prices through 2011 and the government, influenced by the Arab Spring which has toppled regimes in other regional countries and destabilised others, is pumping some of the surplus from this into a massive stimulus package. The infrastructure investment and higher disposable incomes this will cause will help growth continue at the country's maritime ports. Specific investments in expanding these maritime facilities, and in projects such as the Saudi Landbridge, will further boost throughputs. Risks are on the horizon, however, as a slowdown in growth in China, and continued economic crises in the West, could lead to another downturn in 2012.
Headline Industry Data
Jeddah Islamic Port Investments Give Upside Risk To BMI Forecasts
In October 2011 the Jeddah Islamic Port (JIP), Saudi Arabia's largest port in terms of both container handling and total tonnage throughput, signed a new deal to upgrade the roads within the facility. BMI notes that this is part of a wider Saudi investment in its maritime facilities and supply chains in general, and provides upside risk to our throughput forecasts for JIP.
Considerable Crude Loadings
According to Bloomberg, oil tankers able to haul a combined 10.4mn barrels a day were at the primary Saudi Arabian oil terminal of Ras Tanura (the world's largest crude oil terminal) in the week ended November 12 2011. The vessels had a combined total capacity of 9.9mn deadweight tonnes (DWT), 22% greater than that recorded in the previous seven day period. Japan and South Korea were to be the principal recipients of the crude oil exports.
Port Officials Refuse Increase In Container Clearance Time
Transportation prices for clearing container truckloads at Dammam's King Abdul Aziz Port in Saudi Arabia have witnessed a massive 300% rise to SAR1,000 (US$266.8), it was reported in mid August. However, according to a senior port official, neither the price of transportation has increased nor has the clearing of goods faced any delay at the port.
Key Risks To Outlook
A sharper-than-expected downturn in the global economy could pose significant downside risks to our forecasts for Saudi Arabia's fiscal position, if it was to translate into a substantial decline in oil prices, leading to a further narrowing of the government's budget surplus. This in turn could have an effect on throughputs at the country's maritime facilities.
The outlook for Saudi Arabia is currently a strong one. The country has benefited from elevated oil prices through 2011 and the government, influenced by the Arab Spring which has toppled regimes in other regional countries and destabilised others, is pumping some of the surplus from this into a massive stimulus package. The infrastructure investment and higher disposable incomes this will cause will help growth continue at the country's maritime ports. Specific investments in expanding these maritime facilities, and in projects such as the Saudi Landbridge, will further boost throughputs. Risks are on the horizon, however, as a slowdown in growth in China, and continued economic crises in the West, could lead to another downturn in 2012.
Headline Industry Data
- 2012 Jeddah Islamic Port total tonnage throughput growth forecast 2.5%, and to average 1.7% per annum to 2016.
- 2012 Jeddah Islamic Port container throughput growth forecast 2.9%, and to average 2.9% per annum to 2016.
- 2012 total trade real growth forecast at 1.5%, and to average 2.4% over the mid term.
Jeddah Islamic Port Investments Give Upside Risk To BMI Forecasts
In October 2011 the Jeddah Islamic Port (JIP), Saudi Arabia's largest port in terms of both container handling and total tonnage throughput, signed a new deal to upgrade the roads within the facility. BMI notes that this is part of a wider Saudi investment in its maritime facilities and supply chains in general, and provides upside risk to our throughput forecasts for JIP.
Considerable Crude Loadings
According to Bloomberg, oil tankers able to haul a combined 10.4mn barrels a day were at the primary Saudi Arabian oil terminal of Ras Tanura (the world's largest crude oil terminal) in the week ended November 12 2011. The vessels had a combined total capacity of 9.9mn deadweight tonnes (DWT), 22% greater than that recorded in the previous seven day period. Japan and South Korea were to be the principal recipients of the crude oil exports.
Port Officials Refuse Increase In Container Clearance Time
Transportation prices for clearing container truckloads at Dammam's King Abdul Aziz Port in Saudi Arabia have witnessed a massive 300% rise to SAR1,000 (US$266.8), it was reported in mid August. However, according to a senior port official, neither the price of transportation has increased nor has the clearing of goods faced any delay at the port.
Key Risks To Outlook
A sharper-than-expected downturn in the global economy could pose significant downside risks to our forecasts for Saudi Arabia's fiscal position, if it was to translate into a substantial decline in oil prices, leading to a further narrowing of the government's budget surplus. This in turn could have an effect on throughputs at the country's maritime facilities.
Contents
Executive SummarySWOT Analysis
Saudi Arabia Shipping SWOT
Saudi Arabia Political SWOT
Saudi Arabia Economic SWOT
Saudi Arabia Business Environment SWOT
Global Overview
Container Shipping
Lines To Enter 2012 In The Red
Overcapacity To Plague Medium Term, Beware 2013
Table: Snapshot Of Container Lines' Orders
ETR Short And Long Term Benefits To Woo Carrier Expansion
Table: Top 20 World Ports
Port Operators To Face Tougher 2012 As Box Volumes Slow
Container Curse To Hit Box Manufacturers, But Outlook Strong
Dry Bulk
Chinese Slowdown Threat Double Downside Risk To Dry Bulk Shipping
Vale May Find Solace With South Korea As Chinese Troubles Continue
Lines Need To Up Capacity Reduction Strategies To Ease Oversupply
Dry Bulk Lines In Choppy Waters, Possibility Of More Bankruptcies
Liquid Bulk
Dirty Tanker Indices Not Very Buoyant
Differing Strategies, Differing Fortunes
Genmar Bankruptcy Just The Beginning
Survival Strategies For Floundering Tanker Operators
Rumoured Chinese Order Has Potential To Sink Crude Oil Shipping Sector
Industry Trends And Developments
Market Overview
Industry Forecast
Jeddah Islamic Port (JIP)
King Abdulaziz Port Dammam
Table: Major Port Data – Throughput, 2008-2016
Trade
Table: Trade Overview, 2008-2016
Table: Key Trade Indicators, 2009-2016 (US$mn and % change y-o-y)
Table: Saudi Arabia's Main Import Partners, 2002-2009 (US$mn)
Table: Saudi Arabia's Main Export Partners, 2002-2009 (Us$Mn)
Company Profiles
National Shipping Company of Saudi Arabia (NSCSA)
United Arab Shipping Company (UASC)
Maersk Line
Mediterranean Shipping Company (MSC)
CMA CGM
COSCO Container Lines Company Limited (COSCON)
Hapag-Lloyd
Evergreen Line
APL
China Shipping Container Line (CSCL)
Hanjin Shipping (Container Operations)
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