10 (Business) Challenges Shaping the Future of Ports

Ports play a central role in the economic and social development of cities, countries and geographies. Ports handle more than 80 percent of global trade, but the maritime landscape is changing, and so is the business of ports. Global trade is being influenced by demographics, technology, sustainability and geopolitics that are shaping important trends.

More specifically, ports face challenges due to divergent population growth rates, fast technological advancements, the shift towards net-zero energy, and increasing protectionism. However, it is clear that the port industry is well placed to positively influence social, environmental, and economic development by creating a healthy, regenerative ecosystem that considers people, planet, and industry.

We highlight 10 (business) challenges that show the indispensable value of the port industry. Each of these challenges will have an impact on the future of ports.

1. Unstable powers - The global balance of power is being challenged by divergence in demographic, economic, technological and geopolitical developments. World powers are securing their position in the future’s global trade networks, impacting current trade patterns.
   
2. Protectionism - Protectionism is rising driven by growing inequalities, (regional) conflicts and shifts in global power balances leading to global trade being affected by trade distortions. This may result in the reshoring of industries, negatively affecting trade and increasing process complexity.
   
3. Ecosystem thinking - Driven by client demands, technological developments, regulations and pressure on margins, the maritime cluster is increasing collaboration. Cities with maritime clusters that invest in collaboration across industries can fully realize their innovation potential.
   
4. Digitization of ports landscape - Tight labor markets, increased collaboration and pressure on margins are driving automation and digitization in the maritime industry. Different levels of digital readiness in ports affect trade and need to be addressed for cybersecurity.
   
5. Resilient infrastructure - Infrastructure (and operational) resilience is becoming critical with ports being exposed to an ever-increasing wide array of potential disruptions that could inflict economic and social damage on a global scale.
   
6. Climate change - Located along coasts or in low-lying estuaries and deltas, ports are vulnerable to changing weather patterns, rising sea levels and extreme weather events because of climate change. Global cargo trade and passenger transport can be affected.
   
7. Decarbonization - Decarbonization has become a global imperative and a priority for the maritime industry being the backbone of global trade. There's agreement that we need to do more to reach net-zero by 2050, and the IMO acted on it.
   
8. E-commerce - Consumer spending on e-commerce platforms is growing with double-digit rates and has profoundly impacted the maritime industry. The increase in containerized cargo has led to the need for modernizing and expanding port infrastructure and operations.
   
9. Consolidation - Driven by shipping volumes, transport efficiency and port expansion, the maritime industry has seen a consolidation in ports, terminals and shipping. Shipping companies, logistics providers and terminal operators have become global.
   
10. Divergent demographics - Northern Hemisphere countries need to use automation and digitalization to address workforce challenges in the aging maritime industry. Meanwhile, Africa's growing population is leading to significant investments in port infrastructure, making African ports important players in global trade.
    

To learn more about the challenges above or about how we can assist you, contact Sjors Berns or Jurriën Veldhuizen.