Nicolas Romero, head of Latin America for Pacific International Lines (PIL), told TOC Americas that disruption has become shipping's new normal, and that flexible fleets and terminals will continue to profit from it.
Disruption has become shipping’s new normal, Nicolas Romero, head of Latin America for Pacific International Lines (PIL), told TOC Americas, and carriers built to absorb it are the ones that profit from today’s volatility.
“The normal day is a disruption,” Romero said. Where shipping lines once faced occasional shocks, he said the industry now has to adapt continuously, and PIL has positioned itself accordingly: “We are built for that.”
Globalisation still growing
Despite the uncertainty around tariffs and trade agreements, Romero told TOC Americas that the underlying flows have not reversed. “When you look at the big picture, I think globalisation remains strong,” he said, adding that nearshoring still accounts for only a reduced part of total flows. Countries across Latin America, he said, are focused on diversifying their trade agreements rather than concentrating on any single partner.
A capacity mismatch
Romero said PIL’s own modelling, comparing the carrier orderbook due over the next five years against Latin America’s terminal capacity, points to a shortfall. “There is a mismatch, that the demand will remain above the capacity,” he said. He added that running the same exercise using the region’s current growth rates against planned terminal expansions produces the same conclusion.
Terminals and fleets built to flex
On the terminal side, Romero said the operators best placed to benefit from short-term disruption, such as port closures linked to El Niño, are those that have kept spare capacity to absorb diverted volumes at short notice. “The flexibility of the terminal is the key point,” he said.
On the carrier side, Romero pointed to PIL’s vessel design. The company operates ships of up to 14,000 TEU with a very wide beam and high reefer capacity, he said, which allows them to be redeployed across different trades as markets shift. He also said PIL has cut vessel speeds by about two knots over the past two decades to reduce fuel consumption, alongside continued investment in bulbous bows, propeller upgrades and alternative fuels such as LNG and methanol.
Asked what might catch the industry off guard again, Romero pointed to Latin America’s country-by-country variation: strong growth in some markets can mask weakness in others, he said, citing a ban on Brazilian beef exports to China that disrupted expectations for reefer cargo growth this year before being lifted. Looking ahead, he said PIL intends to keep leaning on fleet flexibility to offset whatever shifts the region throws up next. “We are there to respond to that,” he said.
About PIL: Pacific International Lines operates vessels of up to 14,000 TEU with very wide beams and high reefer capacity, allowing them to be redeployed across different Latin American trades, Romero said.