Shipping Industry has always been extolled for their commitment towards international trade. The global marketplace is highly dependent upon the shipping companies that encourage different nations to import & export anything to everything existing on this planet. It can be easily said that the shipping & freight industry has made a superb history right from its commencement.
The global shipping industry experienced tough times during the financial crisis of 2008-2009, however, recuperated well in 2010 and posted solid growth in 2011. It is relied upon to keep on growing as the world economy enhances and new opportunities that comes through.
The market condition for the container shipping industry is obviously affected by the political climate worldwide.
Here are 10 global trends that are impacting today’s market situation.
- Lower demand for shipments to & from the Far East: China has had a quick economic growth amid the most recent decades and the nation has been an enormous force for expanding global trade. However, the previous year we could see the anticipated growth actually diminish which has prompted a lower demand for shipments to and from the Far East.
- Increasing demand for customer focus and new technology: We are amidst a technical revolution where everybody in the whole logistic chain- from producer to collector (consignee) – puts resources into, and develops, new systems to accomplish higher efficiency. There should be more transparency in the entire logistic chain, from producer to consignee, with ambition in the development of processes and to share common IT-systems. It would not be surprising if new container shipping alliances would take initiative for such cooperation.
- Industries adapt their freight to the container shipping method: Another trend is that industries are adapting containerisation. For instance, the paper industry has adapted their freight to the container shipping method by changing the size of paper rolls to fit the containers. The freight is transported directly from the mill to the consignee, or sometimes directly to the consumer, to make it more efficient and to decrease the risk of damages.
- Increased commodities, fertilizers, peat moss, malt and timber: Generally, there is a world trade growth and some even foresee that in the following decade 90 percent of the general worldwide freight will be shipped in containers. Commodities such as fertilizers, peat moss, malt and timber are now containerized to a prominent degree.
- The overcapacity in the container segment does not match the financial cycles: Timing is another important factor for the balance of supply and demand. The giant ships of 14 000 TEUs, or more, need to fit into the financial cycles so as to give a balance between supply and demand. This is a troublesome task in an unstable market where prices move potently and uncertainly.
- Shift from Roll-on/roll-off (RoRo) vessels to container vessels for Short-sea transportation: RoRo vessels presently rule short ocean transportations within the SECA ranges. But the intra-European market expands year by year and we now see an upcoming trend where container vessels build their intra Europe market share. The container vessels are more effective and adaptable contrasted with RoRo vessels, which today are generally old and couple of new RoRo vessels are in order.
- Capacity in ports grows faster than trade volumes: In some regions today, there are a few seaports adding to an imbalance between supply and demand. Transporters need to choose which ports to invest in and in the meantime; there is a risk with just a couple of big ports controlling the logistics movements. Single terminal operators that might only find interest in signing up with one or two alliances prompts no differing qualities in the industry, doesn’t benefit the clients/transporters or an open market competition?
There are numerous elements that assume a critical part for the balance amongst supply and demand in the container shipping industry. We deal with many difficulties, but also possibilities, ahead of us. We are eager to keep on following the global trends that impact the market situation and to find the best solutions for our clients later on.
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Gandhi International Shipping is agent for several large Ro/Ro carriers to various destinations around the world. Our core business is worldwide shipments of cars, vans, trucks, trailers and heavy machinery. We can also offer project and container shipments.
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