Containing the Houthi impact on Piraeus port
The port of Piraeus has so far weathered the impact of the Red Sea attacks, but will not be able to do so for much longer, ratings agency DBRS Morningstar warns, as it is expected to take a significant blow with a reduction of 30% or more in cargoes over the next period, due to container shipping giants stopping or changing their routes.
The agency notes that adverse winter weather conditions in Northern Europe and the current Red Sea crisis will temporarily have a negative impact on the operation of container ports across Europe.
It expects the Red Sea crisis to have a greater impact on Eastern and Southern Mediterranean ports, with volumes temporarily reduced, while the main ports of call in Northern Europe are expected to experience a limited impact and may see gradual pressure on capacity due to delays which bring the longest journeys.
Main ports, which are final destinations, such as the port of Rotterdam or that of Antwerp, are expected to have more protected volumes and therefore more stable cash flows. Secondary ports, such as those in the Eastern Mediterranean, which are a stopover on the way to the main ports and geographically more affected by rerouting, are expected to experience some temporary reductions in volume. The agency identifies the greatest risk in Italian ports, such as Genoa and Gioia Tauro.
Regarding Piraeus, the fifth largest container port in Europe, DBRS points out that container volumes have so far been fairly stable, with little impact from the disruptions caused by the Houthi attacks. However, it expects loads to drop by around 30% or more in the near term. “We will continue to monitor the situation, especially once ships from Asia and the Middle East start arriving in Europe,” it adds.
DBRS explains that many large container transporters (CMA CGM, Cosco Shipping Lines, Evergreen Line and Orient Overseas) decided to stop their itineraries from Asia to Piraeus, which is also an intermediate station for Northern Europe. Maersk and other container shipping companies have changed routes to the Cape of Good Hope and do not enter the Eastern and Central Mediterranean.
