Although vehicle handling at the Port of Gothenburg was greatly affected by the COVID-19 virus related reduction of production at Volvo companies, there already were signs of a recovery, a key logistics company said.
Logent Ports and Terminals, which handles mainly transocean vehicle volume, had also been able to broaden its customer offering.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Vehicle handling at the port in Sweden is dealt with by that terminal operator plus Stena Line and Gothenburg Roro Terminal.
The combined volume processed by these three companies make the port the largest vehicle shipper in Sweden.
Volvo companies are the largest customers, both for exports and imports. At the end of March they shut down production in Gothenburg and Ghent although this did not have any major impact on the number of vehicles shipped during the first quarter, and the total fall in volume was no more than 1%.
"The effects of the COVID-19 pandemic will be reflected in the Q2 figures although we are already in a recovery process," said Reine Johansson, chief executive of Logent Ports and Terminals.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"We have noted a rise in vehicle exports since the end of April. We serve mainly overseas markets, such as the US, Australia, Japan, and China, where Volvo continues to report good sales figures.
Even within what is termed the high & heavy segment, which includes [Volvo AB Group produced] dumpers, excavators, trucks, and other heavy duty vehicles, production has restarted, and companies are reporting a steady increase in exports.
There are also significant imports of a number of passenger cars of different brands into Gothenburg, including Volvo, Nissan, and Renault, but the level of recovery is still not on a par with exports.
When the automotive industry was struck by the COVID-19 pandemic, the vehicle terminal was able to use available space for other types of freight to a greater extent than previously.
"The situation has allowed us to receive more project loads using the flexible space we have at our disposal," said Johansson.
Another effect of the COVID-19 pandemic has been – and still remains to a certain extent – an imbalance in demand for products that are being transported, which means that freight units may need to be put into buffer storage before the product reaches its final destination. The vehicle terminal is able to offer this type of service.
Thirty percent of Swedish foreign trade passes through the port as well as half of all container traffic.
