Continuing last year’s trend, the majority expect container terminals to enjoy the biggest increase in demand.

This is driven by the advent of larger vessels, which are having a cascading effect on container terminals of all sizes. Although the largest ports are the first to be impacted, as they accommodate the largest new vessels, the ‘smaller’ ships they previously played host to then need to find alternative facilities. Again, these facilities have to be upgraded to deal with increased vessel size and demand. The impact of bigger ships is not just a concern for the world’s largest ports: larger vessels and the increased throughput they bring trickle down through the whole industry.

It’s unsurprising that large scale LNG facilities are also expected to enjoy a large increase in demand. As we’ve seen, the demand for this clean burning fuel continues to grow. Similarly, the expectation that LNG bunkering will also enjoy an increase in demand makes perfect sense, as this market becomes established and evolves.

The OECD’s 2015 “Impact of Megaships” report put forward that 24,000 TEU vessels, which could be in service as soon as 2020, will have a major impact on main trade lines. They could potentially raise transport costs and hinder the competitiveness of ports overall because, although increasing vessel sizes have delivered cost savings in the past, these are decreasing with size, and size-related ‘fixes’ to port and hinterland infrastructure could be substantial. Ever growing vessel sizes certainly bring with them a whole host of new considerations for ports, not least upgrading infrastructure to allow them to berth. With onwards logistics concerns bringing about their own problems, there needs to be more collaboration and communication across the whole supply chain to enable the next round of megaships to bring with them the economies of scale they were intended to.

Working with and across suppliers, through an iterative process, from design, is critical to ensuring the port itself benefits from the increased throughput of increased vessel sizes, rather than being hamstrung by it.

With 54% of those surveyed believing hinterland infrastructure isn’t currently adequate to keep up with the increased throughput brought about by larger vessels, respondents are split on the matter. This is one area where facilities cannot afford to become complacent.

Take the recent much reported ‘gridlock’ on the West Coast of America at the ports of Los Angeles and Long Beach. Operational issues - including the number of mega container ships calling - meant that average vessel turnaround time went up from four or five to 8.4 days at the worst point. The West Coast quickly saw a dramatic impact from this situation, with customers already rerouting shipments to the East Coast.

Traditional trade routes are evolving now more than ever, and facilities need to adapt to survive and thrive to the new reality. In the US, the extension of the Panama Canal will revolutionize the flow of traffic whilst the country is already looking for alternatives to the Port of Los Angeles and Long Beach, the recent labor disputes highlighting the issue of over-reliance on these two facilities.

Maintaining flexibility throughout the supply chain will become increasingly important as businesses continue to move towards just in time delivery and lean business models. Technology has evolved so that decisions can be made on a day to day basis, which will make competition between ports fiercer than ever. If shipping lines can more fluidly change their course, the most adaptable terminals will be best equipped to accommodate them in future.