Statistics

Semi–Annual
2008 Stats Analysis for the Port of Halifax

The Port of Halifax has experienced a decline in cargo volumes in the first half of the year. Overall total TEU’s year-over-year have decreased -16.3% for the first six months.
Several factors are at play:

The 2007 loss of two weekly services is fully reflected in the first half of the year;
The high Canadian dollar relative to other currencies;
The weakening US economy has impacted both export and import cargo volumes through the Port of Halifax;
The high cost of bunker fuel and the effect on overseas sourcing. In 2003 the average cost of bunker fuel was $152 (USD) a tonne – today bunker fuel is $635 (USD) a tonne - this has had a direct effect on freight rates.
Continued consolidation of international shipping lines

The decrease in containerized cargo is not a problem unique to the Port of Halifax – ports all over North America are facing downturns. June 2008 just ended and Asian imports are forecasted to be down 7.1% in comparison with June 2007 at North American ports due to softened import demand. The down turn in the US economy is affecting people’s spending and buying patterns:

Furniture and home appliances (includes electronics, toasters, washers, driers etc.) are down -21%
Apparel is down - 6.9%
Footwear – Flat – no growth

The USA’s import activity is suffering from the devaluation of the dollar, the housing crisis and inflation.

Many of these items come through the Port of Halifax. When consumer spending is down, goods are not shipped through Halifax or any other Port.

Although these factors have affected our growth over the past six months, we are confident in the long-term prospects for our Port. There is tremendous opportunity for growth as emerging markets change the face and pace of global trade.

The Port of Halifax is continuing to target a series of traditional and emerging markets in 2008 for cargo growth. In 2007 emerging markets such as the Indian Subcontinent, the Far East, and the Caribbean, all showed promise with increases in cargo volumes compared to 2006. Traditional markets such as Europe and the US Midwest continue to be targets for the Port of Halifax.

We are well-positioned to meet the challenges of our times and to build on the solid base of cargo activity which has been built over many years. As we move ahead, we know that we will be successful only by continuing to work with our existing partners, here in our own region, in the rest of Canada and in the rest of the world – and by forging new relationships where we need to.