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January 2 2023

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Januar y 2, 2023 | Journal of Commerce 43 EXECUTIVE COMMENTARY 2023 ANNUAL REVIEW & OUTLOOK Maritime strategy. Cargo will always find the most efficient way to flow, and no port has guaranteed volumes. As we wind down 2022, the port of NY-NJ was ranked the largest port in the US in Q4, illustrating that every port must compete or watch business move else - where. Customers have a choice. Remaining competitive in the port business is essential, especially with the US as the world's largest consumer economy. The state of California itself could soon be the 4th largest economy in the world, replacing Germany. It's also important to keep con - tainer terminal operations fluid by moving cargo off the terminal as fast as possible. Ports should not become container storage yards on expensive waterfront real estate. Port conges - tion creates problems that are costly and has a ripple effect on inland supply chains. We're applying a safer, bigger, better strategic approach to our business model for customers. We're continuously improving our con - tainer terminal operations using lean methodology, safety best practices, extensive metrics, technology, and input from all our users. The supply chain requires more technological solutions adopted, because physical infrastructure is not unlimited. APM Terminals is taking on the global supply chain's biggest challenges with purpose, values, and technology. Technology is clearly the gamechanger and catalyst for the future of supply chains. A lack of tech is causing major disruptions in the supply chain, and untapped opportunities in artificial intelli - gence (AI) will make the ecosystem work much better. Exponential advances are evolving and tech is a major investment area for all cus- tomers. The current hiring crisis is forcing companies to look for more tech solutions — the future is digital and the COVID-19 pandemic only accelerated it. APM Terminals is committed to replacing container handling equip - ment in LA by 2030. The goal is net zero worldwide by 2040. It is an exciting time in the sup- ply chain industry. The pandemic highlighted its importance to con- sumers and to businesses — supply trade rose 28 percent in the first eight months of 2022, to reach $64 billion. We are anticipating growth from a short sea and regional per - spective on the volume side, which we need to be positioned to meet, in the context of a wider global reces - sionary climate. There is an opportunity to improve end-to-end supply chain visibility, providing customers with real-time data and a holistic under - standing of their partners across the supply chain. By making key decision factors available — such as real-time location, production rates, and delivery schedules of raw materials, components, and final products across the global supply chain — it becomes easier to identify disruptions, mitigate their impact, and improve productivity across the logistics ecosystem. We also see an opportunity to introduce more resilience and connectivity for key markets that are currently underserved by the global shipping markets. Our 2022 acquisition of an 80 percent equity stake in Dubai-based Global Feeder Shipping (GFS) provides us with an opportunity to strengthen our hub and spoke model by linking core markets to key port assets such as Khalifa Port. APM Terminals - Americas Leo Huisman Regional Managing Director, Panama These are exciting times in container terminal operations. Most US container terminals had two years of record growth, and the pandemic highlighted the importance of port operations to consumers and to businesses. We want to recognize our labor part - ners, whose hard work and expertise kept US supply chains moving throughout the pandemic. Supply chain disruption is a constant risk, and customers need to build in resiliency and have mul- tiple gateway options in their port are seeing is the ongoing demand for better connectivity, faster turnaround times, and deployment of digitalization to track real- time information and enable data exchange. Globally, we are likely to see slowing demand for transport and logistics and a decline in freight rates, driven by a slowing econ - omy and easing of supply chain congestion. Within some of our key regions such as MENA, Indian Subcontinent, Red Sea, and Turkey, however, trade is predicted to continue growing. The UAE–India Comprehensive Economic Partnership Agreement, which was signed at the beginning of 2022, is already delivering increased UAE–India trade. China is also a key growth area. China–UAE bilateral BBC Chartering Ulrich Ulrichs CEO The pandemic and subsequent events have led to greater awareness and understanding of global transport chains and that companies in this sec - tor play a significant role in securing safety of supply for both the popula- tion and the industry. This also had an impact on the understanding and definition of what critical infrastruc - ture means and that companies in the multipurpose/heavy-lift sectors are clearly part of it. Also, many have developed more flexibility when it comes to working from home offices and keeping the business up and running without major disruptions through lockdowns, etc., which has led to an increasing digitalization of work processes. With an increasing skills shortage, the recruitment of experienced staff is becoming challenging, which will eventually lead to even more flexibil - ity in terms of work time and work locations. One thing that has not changed is that the multipurpose/heavy-lift fleet is aging, although there is no significant new construction activity. This will contribute to a shortage of tonnage over time. An overcapacity scenario is not likely to happen in this shipping sector anytime soon with construction activity on such a low level. In this sector, companies are mostly privately owned and must consider risks of new ship orders even more thoroughly. This means that more and more vessels are nearing their phase-out, with regulations such as EEXI and CII contributing as they are likely to cause earlier decommissioning of some vessels. Retro - fitting older and smaller vessels is often not commercially viable. "Companies in this sector play a significant role in securing safety of supply for both the population and the industry. " ▶ "Supply chains need to be resilient, with multiple contingencies in place that are easily implemented with speed and accountability." Leo Huisman

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