Warehouses Struggle to Forecast Demand

A new survey commissioned by ProGlove, leader in wearable barcode scanners, has identified the ongoing struggles of warehouses trying to predict demand patterns accurately. Of those surveyed, just 39 per cent of respondents felt they could accurately predict trends and activity for the holiday season.

Forecasting demand is one of the cornerstones of successful warehouse management. Yet, 51 per cent of respondents stated that forecasting demand was their biggest inventory management concern. In order to forecast demand accurately and avoid stock surplus or shortfalls, organisations need a predictable logistics landscape. Unfortunately, 2022 was not a year for predictability, and 2023 is already continuing on a similar trajectory. The war in Ukraine, inflationary pressures and the impact of the Covid outbreak in China on global supply chains are just a few factors creating an uncertain environment for warehouses this year.

Uncertainty throughout supply chains over the 2022 peak holiday season has continued into 2023

1 in 5 (19%) respondents stated they weren’t prepared for the peak holiday season in 2022. Looking ahead, less than 2 in 5 (38%) expect supply chain issues to be largely resolved next year. The research, therefore, demonstrates that warehouses must develop resilience to counteract what is expected to be a turbulent year ahead. Instead of focusing on the external factors they can’t control, organisations need to look at their internal operations and focus on what they can control.

Building resilience in the warehouse

When asked whether they felt adequately prepared for the changing retail patterns of the peak holiday season, just 12 per cent of those surveyed said they felt ‘very prepared’. Employees are looking for the tools to build preparedness from the shop floor to the C-level. By factoring external instability into their operations as a constant, businesses can move beyond fretting and look to building advanced solutions.

Ilhan Kolko, CPO of ProGlove, commented, “Resilience comes from a well-equipped, motivated and safe workforce with transparent and extensive knowledge of their roles and processes. Investing in human-centred technology, and seeking out efficiency gains built around the human worker, can provide the stability warehouses are looking for. The findings in our survey confirm what has been self-evident to those in the warehousing and logistics industry for a few years. External factors are wreaking havoc on the ability of businesses to predict demand and prepare for new challenges. Organisations need to focus on building agile and efficient processes through data-driven insights into the internal workings of the shop floor. Building certainty in the warehouse protects from uncertainty outside of it.”

Warehouses Struggle to Forecast Demand

A new survey commissioned by ProGlove, leader in wearable barcode scanners, has identified the ongoing struggles of warehouses trying to predict demand patterns accurately. Of those surveyed, just 39 per cent of respondents felt they could accurately predict trends and activity for the holiday season.

Forecasting demand is one of the cornerstones of successful warehouse management. Yet, 51 per cent of respondents stated that forecasting demand was their biggest inventory management concern. In order to forecast demand accurately and avoid stock surplus or shortfalls, organisations need a predictable logistics landscape. Unfortunately, 2022 was not a year for predictability, and 2023 is already continuing on a similar trajectory. The war in Ukraine, inflationary pressures and the impact of the Covid outbreak in China on global supply chains are just a few factors creating an uncertain environment for warehouses this year.

Uncertainty throughout supply chains over the 2022 peak holiday season has continued into 2023

1 in 5 (19%) respondents stated they weren’t prepared for the peak holiday season in 2022. Looking ahead, less than 2 in 5 (38%) expect supply chain issues to be largely resolved next year. The research, therefore, demonstrates that warehouses must develop resilience to counteract what is expected to be a turbulent year ahead. Instead of focusing on the external factors they can’t control, organisations need to look at their internal operations and focus on what they can control.

Building resilience in the warehouse

When asked whether they felt adequately prepared for the changing retail patterns of the peak holiday season, just 12 per cent of those surveyed said they felt ‘very prepared’. Employees are looking for the tools to build preparedness from the shop floor to the C-level. By factoring external instability into their operations as a constant, businesses can move beyond fretting and look to building advanced solutions.

Ilhan Kolko, CPO of ProGlove, commented, “Resilience comes from a well-equipped, motivated and safe workforce with transparent and extensive knowledge of their roles and processes. Investing in human-centred technology, and seeking out efficiency gains built around the human worker, can provide the stability warehouses are looking for. The findings in our survey confirm what has been self-evident to those in the warehousing and logistics industry for a few years. External factors are wreaking havoc on the ability of businesses to predict demand and prepare for new challenges. Organisations need to focus on building agile and efficient processes through data-driven insights into the internal workings of the shop floor. Building certainty in the warehouse protects from uncertainty outside of it.”

FarEye Platform on SAP for Parcel Visibility

FarEye announced that its FarEye platform, which provides real-time visibility of shipments from first to last mile, is now available on SAP® Store, the online marketplace for SAP and partner offerings. FarEye is one of the first SAP partners offering parcel-level visibility, in addition to shipment-level visibility, giving customers the ability to track orders across all miles of the order-to-door journey.

FarEye established an SAP partnership in 2021. FarEye’s modular products – Ship, Track, Route, Execute and Experience – are oriented across the order-to-door journey and are included within the FarEye platform to efficiently execute last-mile delivery. Integrated with SAP Business Network for Logistics, FarEye’s platform helps companies deliver a consistent, superior customer experience.

“We share a common goal with SAP to help companies deliver their products faster, efficiently, and accurately,” said Suryansh Jalan, President, FarEye. “Through the integration of our FarEye platform with SAP Business Network for Logistics, businesses that use SAP solutions are now able to track and orchestrate their orders at the individual parcel level and visualise them within the network, and their end consumers will also experience the same level of visibility and control into their delivery, which can lead to happier, more loyal customers.”

Parcel-level visibility is important because it provides transparency not only to end consumers but also to different stakeholders responsible for each leg of the parcel’s movement. With parcel-level visibility, stakeholders can achieve granular visibility that’s needed to make the necessary connection between order, shipment and each parcel across complex global supply chain operations. For the end consumer expecting visibility of their parcel en route to their door, FarEye’s control tower functionality gives retailers visibility throughout the delivery so they can manage consumers expectations when it comes to estimating and communicating accurate time and date of the delivery.

SAP Store, found at store.sap.com [7], delivers a simplified and connected digital customer experience for finding, trying, buying and renewing more than 2,200 solutions from SAP and its partners. There, customers can find the SAP solutions and SAP-validated solutions they need to grow their business. And for each purchase made through SAP Store, SAP will plant a tree.
FarEye Technologies, Inc. is a partner in the SAP® PartnerEdge® program. The SAP PartnerEdge program provides the enablement tools, benefits and support to facilitate building high-quality, disruptive applications focused on specific business needs – quickly and cost-effectively.

About FarEye

FarEye’s Delivery Management platform turns deliveries into a competitive advantage. Retail, e-commerce and third-party logistics companies use FarEye’s unique combination of orchestration, real-time visibility, and branded customer experiences to simplify complex last-mile delivery logistics. The FarEye platform allows businesses to increase consumer loyalty and satisfaction, reduce costs and improve operational efficiencies. FarEye has 150+ customers across 30 countries and five offices globally. FarEye, First Choice for Last Mile.

FarEye Platform on SAP for Parcel Visibility

FarEye announced that its FarEye platform, which provides real-time visibility of shipments from first to last mile, is now available on SAP® Store, the online marketplace for SAP and partner offerings. FarEye is one of the first SAP partners offering parcel-level visibility, in addition to shipment-level visibility, giving customers the ability to track orders across all miles of the order-to-door journey.

FarEye established an SAP partnership in 2021. FarEye’s modular products – Ship, Track, Route, Execute and Experience – are oriented across the order-to-door journey and are included within the FarEye platform to efficiently execute last-mile delivery. Integrated with SAP Business Network for Logistics, FarEye’s platform helps companies deliver a consistent, superior customer experience.

“We share a common goal with SAP to help companies deliver their products faster, efficiently, and accurately,” said Suryansh Jalan, President, FarEye. “Through the integration of our FarEye platform with SAP Business Network for Logistics, businesses that use SAP solutions are now able to track and orchestrate their orders at the individual parcel level and visualise them within the network, and their end consumers will also experience the same level of visibility and control into their delivery, which can lead to happier, more loyal customers.”

Parcel-level visibility is important because it provides transparency not only to end consumers but also to different stakeholders responsible for each leg of the parcel’s movement. With parcel-level visibility, stakeholders can achieve granular visibility that’s needed to make the necessary connection between order, shipment and each parcel across complex global supply chain operations. For the end consumer expecting visibility of their parcel en route to their door, FarEye’s control tower functionality gives retailers visibility throughout the delivery so they can manage consumers expectations when it comes to estimating and communicating accurate time and date of the delivery.

SAP Store, found at store.sap.com [7], delivers a simplified and connected digital customer experience for finding, trying, buying and renewing more than 2,200 solutions from SAP and its partners. There, customers can find the SAP solutions and SAP-validated solutions they need to grow their business. And for each purchase made through SAP Store, SAP will plant a tree.
FarEye Technologies, Inc. is a partner in the SAP® PartnerEdge® program. The SAP PartnerEdge program provides the enablement tools, benefits and support to facilitate building high-quality, disruptive applications focused on specific business needs – quickly and cost-effectively.

About FarEye

FarEye’s Delivery Management platform turns deliveries into a competitive advantage. Retail, e-commerce and third-party logistics companies use FarEye’s unique combination of orchestration, real-time visibility, and branded customer experiences to simplify complex last-mile delivery logistics. The FarEye platform allows businesses to increase consumer loyalty and satisfaction, reduce costs and improve operational efficiencies. FarEye has 150+ customers across 30 countries and five offices globally. FarEye, First Choice for Last Mile.

Packing Software for Spare Parts

Nulogy’s relationship with CEVA Logistics is continuing to forge ahead after its flexible cloud-based software was chosen as the new platform for the co-packing of automotive spare parts at its Melbourne facility in Australia.

Nulogy’s industry-leading contract packing software is replacing the existing solution in order to meet the growing requirements for the handling of automotive parts. By digitalising operations at the site, Nulogy will drive enhanced visibility and real-time production monitoring, as well as improve materials and inventory management for the business and its customers.

Nulogy has successfully supported the implementation of its solution at several CEVA co-pack sites around the globe, including in the Netherlands, Poland, France, Turkey, and the United Kingdom. This new implementation in Australia expands the use of Nulogy from FMCG sector clients to the automotive sector.

Bart Beeks, Global Contract Logistics Leader at CEVA Logistics, said: “At CEVA Logistics, our focus is on providing our customers with a complete, agile, and efficient warehousing solution. This includes providing state-of-the-art contract packing services and our strengthened partnership with Nulogy will allow us to further digitalise our operations worldwide, especially in growth markets.”
Josephine Coombe, Managing Director, Europe, Nulogy, said: “As trusted partners in providing digitalisation across CEVA Logistics’ global co-packing network, we’re delighted to see the adoption of Nulogy in Australia.

“Innovators like CEVA Logistics recognise the powerful benefits that digitalisation brings to their co-packing businesses, enabling faster, higher quality and responsive service to customer needs whatever the products. As automotive customers demand collaborative and responsive partners across their supply chains, our customers enjoy significant competitive advantage in the market because of the customer service, quality and traceability benefits Nulogy delivers.”

Nulogy, a leading supplier of digital supply chain solutions, enables consumer brands and their supplier communities to collaborate on a multi-enterprise platform to deliver with excellence to an ever-changing consumer market. The Nulogy Multi-Enterprise Supply Chain Business Network Platform optimises contract manufacturing and co-packing operations, while empowering consumer brands and their external suppliers to accelerate network responsiveness and collaborate at the speed of today’s market.

 

INFORM Software Appoints USA CEO

INFORM, a global software provider for AI-driven Digital Decision-Making optimizing business operations, headquartered in Aachen, Germany, announced today the promotion of Justin Newell to Chief Executive Officer (CEO), INFORM North America. He succeeds INFORM North America founder and Chairman, Adrian Weiler, who will continue in his role as ongoing advisor to the CEOs across all INFORM Group entities, as well as serving as a representative of the organization in leading industry associations and conferences. In addition to his new role as CEO of INFORM North America, Newell will retain his role as Chief Operating Officer, which he has held since January 2019, and as CEO emphasize profitable growth of INFORM’s business in North America by delivering INFORM’s Hybrid AI-based decision-making technologies.

As CEO of INFORM North America, Newell will continue to focus on business development in North America with a primary emphasis on key sectors. Additionally, he will continue his focus on developing the INFORM North American-based project delivery teams. In performing his role, Newell will continue to consult with Weiler and collaborate with the CEOs both in INFORM headquarters and across the other INFORM entities globally.

In discussing his new appointment, Newell said, “I was fortunate to have been recruited by Adrian and to directly work with him over the past four years. His mentorship, guidance and friendship have created a very rewarding atmosphere that has helped me contribute to the substantial growth of INFORM in North America. Adrian’s strategic vision and guidance will continue to be a resource as we continue to grow our revenue and overall capabilities in this very strategic market.”

Newell continued, “I am looking forward to assuming my new responsibilities as CEO of INFORM North America. Over the past few years, and despite the challenges brought on by the global pandemic, climate change and socio-economic developments, INFORM has advanced its mission and supported the increased profitability, process optimization, and crisis resilience for North American companies in diverse industries. Applying our Hybrid AI-based decision-making technologies, we also are enabling our customers to meet their sustainability goals by optimizing their operations and maximizing their vehicle, equipment, and human resources.”

Newell came to INFORM after having successfully performed in senior level roles with such leading brands as Reliable Carriers, Inc, Porsche Cars North America Inc., and Genuine Parts Company (NAPA). At that time, INFORM’s North American customer base was predominantly within the aviation industry, which it had been since 1992. Under the direction of Weiler, Newell’s role as COO was to focus on growing the Manufacturing Logistics (Automotive), Logistics (Maritime, Terminal, Intermodal and Distribution Centers) and Fraud Prevention business.

Newell added, “Over the past four years, the automotive and finished vehicle logistics area has grown immensely and is now INFORM’s second largest in revenue in North America following aviation. Our fraud prevention business is also on a trajectory for excellent growth opportunities as we have placed a large focus on strategic partnership alliances with companies such as Huron and will continue to pursue other valuable partners when doing so would complement our capabilities and target growth areas.”

As evidence of its growth, INFORM recently entered contracts with leading companies such as AMPORTS, a leader in the global automotive service industry and one of the largest auto processors in North America; Norfork Southern’s Rossville and Austell terminals; VinFast, a leading manufacturer of smart electric vehicles (EVs); and Volkswagen Group of America, as well as a strategic partnership with the Huron Consulting Group, among others.

Dr. Andreas Meyer, INFORM Group CEO noted that, “INFORM has established a strategic global footprint with an international presence that includes our headquarters in Aachen, Germany and our subsidiary in Lisbon, Portugal; our South American subsidiaries in Santiago, Chile and Sao Paulo, Brazil; and our Asia-Pacific subsidiaries in Sydney, Australia and Singapore, as well as our North American organization in Atlanta, Georgia. We have been very selective in establishing strong executives to lead our organization across our global network. As a result, we have been realizing steady growth and a loyal customer base that has experienced the high value and return on their INFORM optimization software investments many times over. Our focus will continue to be one of internationalization as we realize there are many organizations that have yet to embrace INFORM’s Hybrid AI technology including Machine Learning, Fuzzy Logic and Operations Research that clearly are needed to compete effectively in today’s marketplace.”

INFORM develops software for the optimization of business processes using Digital Decision Making based on Artificial Intelligence and Operations Research. The company supplements classic IT systems and increases the profitability and resilience of many companies. While data management software only provides information, INFORM systems can analyze large amounts of data in a matter of seconds, calculate numerous planning variants and suggest the best possible solution to the user for execution, often in real-time. Today, more than 900 software engineers, data analysts and consultants support more than 1,000 customers worldwide in manufacturing, trade, airports, ports, logistics, banks, telecommunication, and insurance companies. Planning and execution processes are optimized in many business operations, like sales planning, production scheduling, supply chain and inventory optimization, staff deployment, logistics and transport management, and financial crime fighting in banking, insurance, and telecommunication.

Logistics Investors set to focus on ‘First Mile’

There could be increased appetite from investors for ‘first-mile’ logistic assets as global supply chain disruption drives a need for firms to improve upstream, business-to-business supply chain logistics, according to a new report from leading global property advisor Knight Frank.

Knight Frank’s latest Future Gazing Report explores the changing requirements and opportunities for first mile logistics, including how the need for increased resilience is driving a reconfiguring of supply chains, evolving infrastructure requirements and the relocation of manufacturing hubs. The report also analyses the areas in which these trends could create new opportunities and requirements for industrial and logistics real estate.

Knight Frank’s report explores how firms’ safety stock requirements increase in line with upstream spikes in supply lead times. If safety stock accounts for 20% of a firms’ UK inventory, and maximum lead times increase from 100 days to 140 days (or 40%) due to supply chain shocks generated by trade tensions, labour shortages and COVID-related shutdowns and shipping disruptions, firms need to raise their total inventory holdings by c. 8% to protect their order books.

As well as holding additional safety stock, many manufacturers are planning to diversify and invest in their supply chains to improve visibility and security, which could provide opportunities to grow UK manufacturing as firms weigh up the benefits and costs of reshoring operations.

Firms across a range of industries are considering reshoring. According to Knight Frank’s analysis, reshoring discussions are currently most prevalent among pharmaceuticals and healthcare-related industries, supplemented by automotive firms, including those focused on alternative fuel vehicles, technology and biotech firms. A relocating or diversifying of production bases will likely necessitate a change in the configuration of the supply chain.

Knight Frank analysed and ranked 41 UK ports based on their suitability for future logistics investment and development given their potential role in shortening supply chains and mitigating supply disruption. Accounting for various factors including port capacity, import and export growth forecasts and access to consumer markets and labour, the analysis found that Liverpool, ranking first for forecast export growth and in the top three for access to consumer markets and skilled labour, emerged as the top location for port-centric logistics potential. Grimsby & Immingham and London ranked second and third.

Claire Williams, Industrial and Logistics Research Lead at Knight Frank, commented: “The rise of e-commerce has led to considerable change at the consumption end of supply chains, with additional costs and facilities being allocated to this part of the supply chain in order to raise service levels and reduce delivery times. However, rising costs and delays at the production end of the supply chain are driving a rethink of the locations of these facilities and the transport connections linking them to downstream operations.

“There is increasing awareness of the opportunities in the first mile of the supply chain. As we enter the next phase of the economic cycle and perhaps a new era for global trade, logistics investors and operators must look to supply chains, assets and opportunities that can provide stability for their operations and returns. First mile markets can enable firms to build and maintain a secure and responsive supply chain for their end users. This demand will continue, with the potential to create attractive opportunities for income-driven investors looking to deploy capital into assets underpinned by strong structural tailwinds.”

Logistics Investors set to focus on ‘First Mile’

There could be increased appetite from investors for ‘first-mile’ logistic assets as global supply chain disruption drives a need for firms to improve upstream, business-to-business supply chain logistics, according to a new report from leading global property advisor Knight Frank.

Knight Frank’s latest Future Gazing Report explores the changing requirements and opportunities for first mile logistics, including how the need for increased resilience is driving a reconfiguring of supply chains, evolving infrastructure requirements and the relocation of manufacturing hubs. The report also analyses the areas in which these trends could create new opportunities and requirements for industrial and logistics real estate.

Knight Frank’s report explores how firms’ safety stock requirements increase in line with upstream spikes in supply lead times. If safety stock accounts for 20% of a firms’ UK inventory, and maximum lead times increase from 100 days to 140 days (or 40%) due to supply chain shocks generated by trade tensions, labour shortages and COVID-related shutdowns and shipping disruptions, firms need to raise their total inventory holdings by c. 8% to protect their order books.

As well as holding additional safety stock, many manufacturers are planning to diversify and invest in their supply chains to improve visibility and security, which could provide opportunities to grow UK manufacturing as firms weigh up the benefits and costs of reshoring operations.

Firms across a range of industries are considering reshoring. According to Knight Frank’s analysis, reshoring discussions are currently most prevalent among pharmaceuticals and healthcare-related industries, supplemented by automotive firms, including those focused on alternative fuel vehicles, technology and biotech firms. A relocating or diversifying of production bases will likely necessitate a change in the configuration of the supply chain.

Knight Frank analysed and ranked 41 UK ports based on their suitability for future logistics investment and development given their potential role in shortening supply chains and mitigating supply disruption. Accounting for various factors including port capacity, import and export growth forecasts and access to consumer markets and labour, the analysis found that Liverpool, ranking first for forecast export growth and in the top three for access to consumer markets and skilled labour, emerged as the top location for port-centric logistics potential. Grimsby & Immingham and London ranked second and third.

Claire Williams, Industrial and Logistics Research Lead at Knight Frank, commented: “The rise of e-commerce has led to considerable change at the consumption end of supply chains, with additional costs and facilities being allocated to this part of the supply chain in order to raise service levels and reduce delivery times. However, rising costs and delays at the production end of the supply chain are driving a rethink of the locations of these facilities and the transport connections linking them to downstream operations.

“There is increasing awareness of the opportunities in the first mile of the supply chain. As we enter the next phase of the economic cycle and perhaps a new era for global trade, logistics investors and operators must look to supply chains, assets and opportunities that can provide stability for their operations and returns. First mile markets can enable firms to build and maintain a secure and responsive supply chain for their end users. This demand will continue, with the potential to create attractive opportunities for income-driven investors looking to deploy capital into assets underpinned by strong structural tailwinds.”

Port of Antwerp-Bruges Stable in 2022

2022 was a year of challenges for Port of Antwerp-Bruges. Geopolitical tensions, the energy crisis and ongoing disruptions in supply chains made their presence felt and, in addition to shifts within the various commodity flows, put sustained pressure on the container segment. This affected throughput, which was down 0.7% year-on-year to 286.9 million tons of cargo. However, the flood of new investments and projects confirms the attractiveness of the unified port and the added value of the complementarity of the two port platforms.

The challenges were most palpable in container traffic. Global disruptions within container shipping, and the resulting congestion with peak call sizes and delays, put pressure on volumes throughout the year. In addition, the conflict in Ukraine caused a decrease in Russia-related traffic by 59%. And while operational challenges at container terminals and congestion have been slowly easing since the third quarter, high energy prices and economic uncertainty have caused a slowdown in demand for container traffic. As a result, container throughput fell 8.6% in tons and 5.2% in TEUs in 2022, compared with a strong 2021, back to pre-pandemic levels.

The war in Ukraine, the sanctions against Russia and the energy crisis greatly changed the energy landscape and flows in Europe, which translated into strong growth in bulk cargo. Dry bulk throughput increased by 13.8% in 2022. Coal throughput, in particular, experienced a sharp increase (+210%) due to the substantial rise in demand for coal powered generation. Fertilisers, however, declined by 18.3% due in part to sanctions on Russia and significantly higher fertiliser prices.

The liquid bulk segment grew 10%, mainly due to a 61.3% increase in demand for LNG as an alternative to natural gas via pipelines from Russia. There was also growth for LPG (+30%), gasoline (+7%), diesel/fuel oil (+9.9%) and naphtha (+7.5%). Chemicals throughput, which had its best year ever in 2021, began to decline in mid-2022 due to increased energy prices that put pressure on the European chemicals sector; volumes ended up by just 1% compared with 2021.

After record figures in 2021, conventional breakbulk (+1.1%) held up well in the first half of the year due to growth in the throughput of steel, the main commodity group within this segment. Starting in the third quarter, steel volumes declined as a result of the slowing economy.

Total roll-on/roll-off traffic saw an increase of 6.5%. More than 3.26 million new cars were handled in 2022, an annualised growth of 10.5%. Throughput of ‘high & heavy’ rolling stock increased by 9.6%, while throughput of used cars and trucks decreased by 13.2% and 17%. respectively. Unaccompanied cargo (excluding containers) grew 10.0%, a significant portion of which was related to the United Kingdom (+4.9%) and Ireland (+35%).

In 2022, Zeebrugge welcomed 144 cruise ships with 547,374 passenger movements, a firm increase compared to the 23 ships and 75,854 passenger movements from last year when cruise shipping was largely at a standstill due to COVID-19. Meanwhile, calls have already been booked up to 2026 and beyond.

Strong as a unified port

The flood of new investments and projects since the merger of the Antwerp and Zeebrugge port platforms confirms the attractiveness and added value of the unified port. The resilience of both port platforms has allowed important steps to be taken in projects that contribute to the port’s sustainable growth and pioneering role in the energy transition. The projects are ready to be further rolled out in 2023 through unified efforts with partners. The hydrogen strategy to make the port a European hydrogen hub for the import, local production and throughput of green hydrogen and hydrogen carriers will be further refined.

The completion of the first part of the NextGen District, the future hotspot for the circular economy, is almost complete and the first spade will go into the ground in 2023. As part of the Port Authority’s ‘greening’ of its fleet, the Hydrotug and Methatug, the world’s first hydrogen and methanol-fuelled tugs, are making an appearance. And the Digital Twin, the digital copy of the port area with real-time info via sensors, drones and smart cameras, will be deployed on both platforms in 2023 to further build a smart, safe and smoothly-operated port.

Jacques Vandermeiren, CEO Port of Antwerp-Bruges: “2022 was, once again, an eventful year, with many logistical and geopolitical challenges. As a world port, we are at the centre of this drama and are holding up well. Thanks to the complementarity of both platforms, we can already see the added value of the merger and, as a unified port, we are much stronger in the face of future challenges. Moreover, with our strong international position, we can make a difference in challenges such as the energy transition. Together with our partners and thanks to financial support, such as the important European funding of 500 million euros for the Antwerp and Kairois@C projects, we can live up to our pioneering role and realise climate impact that reaches far beyond the port’s borders.”

Annick De Ridder, Vice-Mayor of the City of Antwerp and President of the board of directors of Port of Antwerp-Bruges: “Despite several significant challenges, together with our partners we have demonstrated our determination and resilience. We remained true to our long-term mission of building a sustainable port. After all, we must fully cherish and strengthen our port as a strategic asset. We are therefore putting our shoulders to the wheel on issues such as the nitrogen dossier, PFAS pollution and the increasingly urgent need for additional container capacity so that our port can continue to fulfil its role as the economic engine of Flanders and we can be a sustainable port that reconciles economy, people and climate.”

Dirk De fauw, Mayor of the City of Bruges and Vice President of Port of Antwerp-Bruges: “The fact that, despite the challenges, we also achieved so many successes in 2022 makes me very proud. First, of course, 2022 was the year of the merger and therefore a historic year. We have also seen important breakthroughs in the field of energy transition with, among other things, the hydrogen plant HyOffWind in Zeebrugge and the Warmtenet Antwerpen Noord. As a world port, however, we would like to do more than create prosperity and jobs. Therefore, we are fully committed to a sustainable future with our environment. The ‘side by side’ environmental communication campaign, the Connection Bridge, the transformation of Fort Filips and the Tall Ships Races are a few great examples of this.”

Port of Antwerp-Bruges Stable in 2022

2022 was a year of challenges for Port of Antwerp-Bruges. Geopolitical tensions, the energy crisis and ongoing disruptions in supply chains made their presence felt and, in addition to shifts within the various commodity flows, put sustained pressure on the container segment. This affected throughput, which was down 0.7% year-on-year to 286.9 million tons of cargo. However, the flood of new investments and projects confirms the attractiveness of the unified port and the added value of the complementarity of the two port platforms.

The challenges were most palpable in container traffic. Global disruptions within container shipping, and the resulting congestion with peak call sizes and delays, put pressure on volumes throughout the year. In addition, the conflict in Ukraine caused a decrease in Russia-related traffic by 59%. And while operational challenges at container terminals and congestion have been slowly easing since the third quarter, high energy prices and economic uncertainty have caused a slowdown in demand for container traffic. As a result, container throughput fell 8.6% in tons and 5.2% in TEUs in 2022, compared with a strong 2021, back to pre-pandemic levels.

The war in Ukraine, the sanctions against Russia and the energy crisis greatly changed the energy landscape and flows in Europe, which translated into strong growth in bulk cargo. Dry bulk throughput increased by 13.8% in 2022. Coal throughput, in particular, experienced a sharp increase (+210%) due to the substantial rise in demand for coal powered generation. Fertilisers, however, declined by 18.3% due in part to sanctions on Russia and significantly higher fertiliser prices.

The liquid bulk segment grew 10%, mainly due to a 61.3% increase in demand for LNG as an alternative to natural gas via pipelines from Russia. There was also growth for LPG (+30%), gasoline (+7%), diesel/fuel oil (+9.9%) and naphtha (+7.5%). Chemicals throughput, which had its best year ever in 2021, began to decline in mid-2022 due to increased energy prices that put pressure on the European chemicals sector; volumes ended up by just 1% compared with 2021.

After record figures in 2021, conventional breakbulk (+1.1%) held up well in the first half of the year due to growth in the throughput of steel, the main commodity group within this segment. Starting in the third quarter, steel volumes declined as a result of the slowing economy.

Total roll-on/roll-off traffic saw an increase of 6.5%. More than 3.26 million new cars were handled in 2022, an annualised growth of 10.5%. Throughput of ‘high & heavy’ rolling stock increased by 9.6%, while throughput of used cars and trucks decreased by 13.2% and 17%. respectively. Unaccompanied cargo (excluding containers) grew 10.0%, a significant portion of which was related to the United Kingdom (+4.9%) and Ireland (+35%).

In 2022, Zeebrugge welcomed 144 cruise ships with 547,374 passenger movements, a firm increase compared to the 23 ships and 75,854 passenger movements from last year when cruise shipping was largely at a standstill due to COVID-19. Meanwhile, calls have already been booked up to 2026 and beyond.

Strong as a unified port

The flood of new investments and projects since the merger of the Antwerp and Zeebrugge port platforms confirms the attractiveness and added value of the unified port. The resilience of both port platforms has allowed important steps to be taken in projects that contribute to the port’s sustainable growth and pioneering role in the energy transition. The projects are ready to be further rolled out in 2023 through unified efforts with partners. The hydrogen strategy to make the port a European hydrogen hub for the import, local production and throughput of green hydrogen and hydrogen carriers will be further refined.

The completion of the first part of the NextGen District, the future hotspot for the circular economy, is almost complete and the first spade will go into the ground in 2023. As part of the Port Authority’s ‘greening’ of its fleet, the Hydrotug and Methatug, the world’s first hydrogen and methanol-fuelled tugs, are making an appearance. And the Digital Twin, the digital copy of the port area with real-time info via sensors, drones and smart cameras, will be deployed on both platforms in 2023 to further build a smart, safe and smoothly-operated port.

Jacques Vandermeiren, CEO Port of Antwerp-Bruges: “2022 was, once again, an eventful year, with many logistical and geopolitical challenges. As a world port, we are at the centre of this drama and are holding up well. Thanks to the complementarity of both platforms, we can already see the added value of the merger and, as a unified port, we are much stronger in the face of future challenges. Moreover, with our strong international position, we can make a difference in challenges such as the energy transition. Together with our partners and thanks to financial support, such as the important European funding of 500 million euros for the Antwerp and Kairois@C projects, we can live up to our pioneering role and realise climate impact that reaches far beyond the port’s borders.”

Annick De Ridder, Vice-Mayor of the City of Antwerp and President of the board of directors of Port of Antwerp-Bruges: “Despite several significant challenges, together with our partners we have demonstrated our determination and resilience. We remained true to our long-term mission of building a sustainable port. After all, we must fully cherish and strengthen our port as a strategic asset. We are therefore putting our shoulders to the wheel on issues such as the nitrogen dossier, PFAS pollution and the increasingly urgent need for additional container capacity so that our port can continue to fulfil its role as the economic engine of Flanders and we can be a sustainable port that reconciles economy, people and climate.”

Dirk De fauw, Mayor of the City of Bruges and Vice President of Port of Antwerp-Bruges: “The fact that, despite the challenges, we also achieved so many successes in 2022 makes me very proud. First, of course, 2022 was the year of the merger and therefore a historic year. We have also seen important breakthroughs in the field of energy transition with, among other things, the hydrogen plant HyOffWind in Zeebrugge and the Warmtenet Antwerpen Noord. As a world port, however, we would like to do more than create prosperity and jobs. Therefore, we are fully committed to a sustainable future with our environment. The ‘side by side’ environmental communication campaign, the Connection Bridge, the transformation of Fort Filips and the Tall Ships Races are a few great examples of this.”

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