The signing of the EU-Canada Comprehensive Economic and Trade Agreement, or CETA, is certainly good news for eastern Canadian ports going forward. The implementation procedures of CETA should be rolled out over the course of 2017 with Canada expected to introduce legislation for CETA in the House of Commons. In the EU, the European Parliament will vote on CETA’s ratification, which will be followed by ratification in the national parliaments of EU member states.
This should bring a welcome boost to trans-Atlantic trade. CETA should bring a positive effect in stimulating a relatively weak cargo demand, set on a background of uncertainties surrounding the longer term effects of BREXIT and the recent US elections (notably on North American trade relations).
Meanwhile, consolidation reached unprecedented heights in 2016, and is expected to continue into 2017. The year 2016 has witnessed the appearance of new entities that did not exist in their current form 12 months ago: Cosco Shipping (after the merger of China’s Cosco and China Shipping), Hapag-Lloyd/UASC, CMA CGM/APL, the THE Alliance, Ocean Alliance, and, more recently, the Japanese lines’ proposed merger. Adding to this reshuffling was the largest bankruptcy in the industry’s history. Profound structural changes are taking place in the maritime industry, the consequences of which will be felt for years to come.
How do ports keep up with a carrier consolidation that seems to have as a rationale the pursuit of larger vessels? North American east coast container ports have announced major investments that should see significant landside improvements in 2017 (and beyond): the new Viau Terminal in Montreal, Virginia International Gateway Phase 2 going forward, Savannah’s Mid-American Arc rail project, Baltimore’s Howard Tunnel improvements, to name a few. The year 2017 should also witness a milestone for East Coast ports as the long-awaited raising of New York’s Bayonne Bridge should be completed for navigational clearance. Will this mark a new era of mega-ships for North American east coast ports?