DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/3wmhxr/kuwait_shipping) has announced the addition of the "Kuwait Shipping Report Q3 2012" report to their offering.
The Kuwait Shipping Report provides industry professionals and strategists, corporate analysts, shipping associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Kuwait's shipping industry.
Kuwait's ports have struggled to recover the volumes they enjoyed prior to the global economic downturn, but BMI expects this largely to be achieved in 2012, with only total tonnage throughput at Shuaiba not forecast to recoup lost levels until 2013. If there are continued instances of industrial unrest and strikes, however, as Kuwait's ports have struggled with since the Arab Spring of 2011, then we may have to revise our forecasts down.
What does bode well for Kuwait's container ports is our macroeconomic outlook for the country. Oil prices remain elevated, and this is translating into spending by the Kuwaiti government. This will help maintain growth at the Gulf state's ports, both through spending on infrastructure projects impacting on total tonnage throughputs, and consumer spending boosting imports of containerised goods.
Headline Industry Data
- 2012 Port of Shuaiba tonnage throughput growth forecast at 4.8% and to average 5.0% to 2016.
- 2012 Port of Shuwaikh container throughput forecast to grow 6.9% and to average 6.8% to 2016.
- 2012 total trade growth forecast to grow 3.6% and to average 3.8% to 2016.
Key Industry Trends Waiting For The Dust To Settle
Kuwait struggled with dust storms in April, a fairly common occurrence at the country's ports. The largest oil export terminal in the country was forced to close to tankers on April 10 as a thick dust storm made conditions too treacherous. In Kuwait City visibility was reduced to around 500m as a result of the storm.
KOTC's Prudent Fleet Modernisation Strategy BMI believes that KOTC's decision to modernise its fleet will serve the company well. The operator is protected from sinking tanker rates given its role as the government carrier for Kuwaiti crude, and a more modern fleet will be more fuel efficient, especially important given current elevated bunker costs.
Risks To Outlook The Middle East and North Africa region has seen huge upheavals since the start of 2011, and no country is immune from the repercussions on trade. Kuwait has not been severely hit by unrest, but it is still possible that demonstrations could develop as they have in other Gulf countries, which could adversely affect our port throughput forecasts. We have seen industrial unrest in Kuwaiti ports, more instances of which in 2012 could affect our outlook.
Further potential downside risks to our throughput forecasts come in the form of the exposure to oil price volatility and a slowdown in global demand. Despite the broadly healthy picture of Kuwait's public finances, its high reliance on oil - which accounts for 94% of total revenues - exposes the budget and, consequently, trade to oil price volatility.
For more information visit http://www.researchandmarkets.com/research/3wmhxr/kuwait_shipping
Source: Research and Markets