PSA have released their year-end results that mirror the trends of sluggish to non-existent growth for most of the industry throughout 2015.
Most noticeably, PSA posted an overall net profit loss of -9.5% compared to the previous year. This loss directly correlates to the decrease in amount of TEUs handled as well by -2%, and PSA’s flagship Singapore Terminal throughput on a decrease of -8.7% year-on-year. A bright spot however was outside of Singapore, PSA Terminals worldwide delivered a throughput of 33.48 million TEUs, increasing by 5% over 2014.
Mr Tan Chong Meng, Group CEO PSA International mentioned a slew of factors that come into play with these results. “In the last few years, we have witnessed the massive impact of rapidly changing mega liner alliances; the arrival of mega ships and port congestion around the globe due to the inadequacy of some berth facilities; protracted dips in crude oil prices; and a global economy that has lost much of its growth momentum resulting in anaemic trade flows.
The unprecedented pace of change is vexing the best minds in our industry and I am convinced that it will also shake up how industry players collaborate or compete in this dynamic environment. We will continue to invest, upgrade, give of our best to our customers and partners, and work alongside them to ride out the choppy waves towards calmer horizons.”
Mr Fock Siew Wah, Group Chairman PSA International had a similar outlook. “In 2015, the unusual volatility that persisted in the global marketplace caused a general loss of confidence on all fronts, bewildering governments, policy makers, central bankers, business leaders and investors, and culminating in sluggish or lower growth for most economies – including China which had been for the past decade one of the world’s key growth engines.
The container shipping industry was not spared as it grappled with softening trade and demand, excess tonnage capacity and depressed freight rates. Amidst this troubling economic landscape, and despite anticipating and preparing for the then oncoming storm, PSA was nevertheless adversely affected albeit to a lesser extent than would be otherwise. I would like to express my gratitude towards our management, unions and staff for their cohesive efforts towards dealing with the many challenges. The ongoing turbulence and decline of market confidence will undoubtedly test our mettle but we remain undaunted.”