Initial Strategic and Financial Advisory Insights to the Executive Team of Carnival Corporation

Global Port Trends 2030

Initial Strategic and Financial Advisory Insights to the Executive Team of Carnival Corporation

As port operations become more complicated, land-use changes, necessitating new collaborations between the port and the city. Due to the limited available space at urban ports, it is necessary to boost a port's space productivity (Deloitte Global Port Advisory, 2020). By boosting berth and terminal occupancy, innovation and automation may help improve efficiency. As a result, Delloite Global Port Advisory (2020) projects that companies and ports will increasingly leverage technological advancements to address limited space constraints.

Ports are sometimes forced to relocate their operations away from the city's historic core because they lack available space. Additionally, several old, smaller ports, frequently situated close to or even in the city center, have lost their usefulness as conventional port terminals due to technical improvements (containerization). Due to these two changes, properties that had previously been used primarily for navigational purposes may now be used for various purposes (Deloitte Global Port Advisory, 2020). Redevelopment of waterfronts will increasingly be utilized to construct ecosystems that mix social and economic features, creating regional added value and employment, benefiting both the city and port.

According to Brocker (2021), port operators' labor expenditures accounted for 14.3 percent of overall revenue in 2021, making them the second-largest expense. Most deep-sea commerce ships include six or more crew members who are not licensed, such as the captain, three deck officers or mates, a chief engineer, three deputy engineers, a radio operator, and other skilled mariners. For bigger organizations, good route management may considerably reduce labor costs (Brocker, 2021). However, labor expenses provide a more significant challenge to ship owner-operators. Owners can only raise revenue (and lower labor costs as a percentage of income) by working overtime and charging more for their services. The wage share of income has grown during the five years to 2021, particularly in the past two years, as increasing demand for cargo ships amidst coronavirus-related supply chains has put pressure on businesses to raise salaries.

References

Brocker, M. (2021). Ocean & Coastal Transportation in the US. IBISWorld, US.

Deloitte Global Port Advisory. (2020). Global Port Trends. Deloitte | The Netherlands. https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/consumer-business/deloitte-nl-cb-global-port-trends-2030.pdf