INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said its operations are unlikely to be affected by new US tariffs, but its Mexico operations may face market impact.
“It is too early to tell the impact since Trump’s flip-flopping every day. It is also too early to tell how these tariffs will settle; our operations are very diverse,” ICTSI Chairman and President Enrique K. Razon, Jr. said during the company’s annual stockholders’ meeting on Thursday.
“The only major impact that could be possible would be at the Manzanillo terminal (in Mexico),” he added.
Mr. Trump has disrupted the global trade system with his “Liberation Day” tariffs, including a 10% duty on goods from all countries.
The Philippines has been hit with a 17% tariff on its exports to the US, but these, along with most reciprocal tariffs, have been suspended for 90 days.
ICTSI operates 33 terminals in 20 countries across six continents. The company has operations in Mexico through Contecon Manzanillo (CMSA).
“There could be an impact (on the Mexico terminal), but so far it is a wait-and-see. Out of our portfolio, trade with the US is only 3%,” he said, noting that if the company’s Mexico operations were affected, this could still be mitigated by other markets.
“Massive industrial installed capacity in China means they will be looking for other markets. So, one market offsets another.”
In 2024, the listed port operator saw its attributable net income surge by 66.1% to $849.8 million from $511.53 million a year earlier, driven mainly by its operations in Asia.
Gross revenues for the period rose by 14.6% to $2.74 billion from $2.39 billion in 2023.
Breaking down the company’s revenue growth, its operations in Asia accounted for the largest share, generating $1.14 billion in 2024, up by 9.6% from $1.04 billion in 2023.
Revenues from its operations in the Americas reached $1.08 billion, up by 26% from $855.62 million in 2023, while revenues from Europe, the Middle East, and Africa (EMEA) totaled $521.02 million, an increase of 6.3% from $490.28 million. — Ashley Erika O. Jose