Despite the war… Beirut port activity is better than expected?

Beirut Port Records Limited Decline in 2024 Amid Regional Tensions

Despite ongoing Israeli aggression and economic instability, the Port of Beirut recorded only a slight decline in overall activity during the first eleven months of 2024, compared to the same period in 2023. While the downturn was expected due to the political and financial crises in Lebanon, the decline remained less severe than anticipated.

Key Port Statistics: 2024 vs. 2023

Increase in Ship Arrivals & Import Volume

• Total number of ships: 1,351 (⬆️ 8% from 1,252).
• Total cargo weight: 4.968 million tons (⬆️ 1% from 4.915 million tons).
• Imported goods for local consumption: 4.158 million tons (⬆️ 4% from 4.007 million tons).

Decline in Exports & Container Movement

• Lebanese exported goods: 810,000 tons (⬇️ 11% from 908,000 tons).
• Total containers: 700,974 TEUs (⬇️ 7% from 757,336 TEUs).
• Exported containers filled with Lebanese goods: 74,122 TEUs (⬇️ 11% from 83,342 TEUs).
• Transshipment containers: 177,791 TEUs (⬇️ 27% from 243,912 TEUs).
• Imported and re-exported cars: 41,135 new & used cars (⬇️ 27% from 57,546 cars).

Increase in Imported Containers for Local Consumption

• Imported containers: 236,547 TEUs (⬆️ 4% from 227,635 TEUs).

Why Was the Decline Less Than Expected?

Elie Zakhour, former president of the International Chamber of Shipping, explained that while a decrease in port activity was inevitable due to ongoing Israeli aggression, political instability, and economic hardships, the decline was limited because:

Imports for local consumption remained stable.
Traders rushed to increase imports due to fears of rising shipping costs.
Geopolitical risks encouraged stockpiling of goods in case of further instability.

The Impact of Shipping Route Changes

Global shipping has been disrupted due to attacks in the Red Sea, forcing companies to reroute vessels via the Cape of Good Hope. This longer route has increased shipping costs, leading Lebanese traders to import goods in advance to avoid further price hikes.

The Role of the “Reform and Salvation Government”

The formation of Lebanon’s “Reform and Salvation Government”, led by Judge Nawaf Salam and backed by President Joseph Aoun, has boosted confidence in the country’s economic future.

🔹 Expected outcomes:

• Increased Arab and international support for Lebanon.
• Economic aid for rebuilding areas affected by Israeli attacks.
• Higher imports of reconstruction materials, leading to increased port activity.

Lebanon’s Import-Heavy Economy

Lebanon imports over $17 billion in goods annually while exporting only $3 billion. This imbalance makes import activity crucial for the country’s economy.

Zakhour emphasized that the post-war reconstruction phase will significantly boost Beirut Port’s activity, particularly as 80% of reconstruction materials must be imported.

What Lies Ahead?

Despite regional instability and economic difficulties, the Port of Beirut has shown resilience, with imports holding steady and ship traffic increasing.

📌 Future expectations:
🚢 Increased imports for reconstruction will boost port activity.
💰 International financial aid could support economic recovery.
📉 Exports and transshipment services may continue to struggle without structural reforms.

Beirut Port remains Lebanon’s economic gateway, and its role will be critical in the country’s rebuilding process in the coming years.