Shipping Trends 2019

//Shipping Trends 2019

Shipping Trends 2019

Just like every year, the shipping industry goes through a series of
transformations based on market shifts and trends that shape the outcome for the next 365 days. As we approach the end of 2018, let’s take a look at some of the trends that might influence our decisions for the next year.

These trends are based on the various drivers of the industry like regulations, technologies, market functions, etc. It’s important to be aware of these global trends as they will allow you to take the decisions you need to in any eventuality.
Here are a few of those trends.

The Continuation of Consolidation

As a global trend, consolidation is something we’ve noticed since the past couple of years. Global conglomerates have been, unsurprisingly, squeezing smaller players out of the market through this tactic. There have already been so many acquisitions that the number of major carrier can be listed out in a single breath.

In 2019, this trend is likely to continue along with certain cases of bankrupcies and strategic alliances (these alliances would majorly be vessel sharing agreements, vessel rotations, etc.).

The smaller companies will drive innovation to stand out and keep a competitive edge in the market. But there’s a possibility they are likely to draw the shorter straw the way the market is moving.

The Continuation of Consolidation

As a global trend, consolidation is something we’ve noticed since the past couple of years. Global conglomerates have been, unsurprisingly, squeezing smaller players out of the market through this tactic. There have already been so many acquisitions that the number of major carrier can be listed out in a single breath.

In 2019, this trend is likely to continue along with certain cases of bankrupcies and strategic alliances (these alliances would majorly be vessel sharing agreements, vessel rotations, etc.).

The smaller companies will drive innovation to stand out and keep a competitive edge in the market. But there’s a possibility they are likely to draw the shorter straw the way the market is moving.

Government Policies

Global relations have always played a crucial role when it comes to significant changes in the market. The only certainty there is that nothing is certain at all, but the impact of policies have become extremely important and need to be continuously monitored. Case in point the trade relations with the US have been making headlines since the US-China trade war took off. With tariffs being introduced between previously free trading unions and strained relations between major countries, the only way to be on top of the changing times is to be prepared for them before they occur. A trend that we see is more vigilant lookout at the global activities of governments and economies to ensure that businesses can brace for impact during uncertain times.

Container-Liner Oversupply

For the past few years we’ve noticed a common theme where there has been an oversupply issue in the container-liner market. While the issue might not be as pronounced as it once was, the problem is far from over. Mostly driven by the fleet expansion issue, this can easily cause the growth to plateau till major steps are taken to rectify it.

The container-liner market will also see some major consolidations, this will result in reduction in production costs, development in networks, etc.

Container-Liner Oversupply

For the past few years we’ve noticed a common theme where there has been an oversupply issue in the container-liner market. While the issue might not be as pronounced as it once was, the problem is far from over. Mostly driven by the fleet expansion issue, this can easily cause the growth to plateau till major steps are taken to rectify it.

The container-liner market will also see some major consolidations, this will result in reduction in production costs, development in networks, etc.

Intelligent Shipping

This isn’t just a trend where technology is merely added to the shipping process but a scenario where the entire shipping process is reconstructed and the business model re-engineered to provide value with the said technology at the core of it. The industry is leaning towards making new technologies a key driving force to provide improved efficiency, reduce costs, and value to its customers.

Going Green

The entire industry has heard the call of governments to take actions that create a sustainable change. Green ports and shipping is an agenda that is going to see great advancements as industry giants follow the policies that promote the use of low-sulphur fuels and cleaning technologies for the reductions of emissions. The process of making the planet a better and greener place is going to be incorporated in the entire transportation process, from planning to construction and operations too. This trend is likely to transform the entire shipping industry.

Going Green

The entire industry has heard the call of governments to take actions that create a sustainable change. Green ports and shipping is an agenda that is going to see great advancements as industry giants follow the policies that promote the use of low-sulphur fuels and cleaning technologies for the reductions of emissions. The process of making the planet a better and greener place is going to be incorporated in the entire transportation process, from planning to construction and operations too. This trend is likely to transform the entire shipping industry.

Cross-border integration

The emergence of big data allowed more than 70 Chinese enterprises to deploy completely new shipping platform models. Other countries followed suit and based on the ‘Internet + Shipping’ paradigm they re-engineered their own economic model for the shipping industry. Denmark created Youship, US has INTTRA, Germany developed GT Nexus and Kn-freightnet, and the UK designed Shipserv. Based on the technological advancements in the upcoming year, these platforms and others like it will see great improvement and radical changes in the time to come.

Development in the Asia Pacific

The international shipping hub is going to shift eastward with the increased trading and rising economic strength of the Asia Pacific region. Through high-quality port services, Hong Kong and Shanghai have achieved tremendous success and growth. This shift is occurring fast and the trend is only strengthening. In the times to come, the development opportunities are only going to increase multifold.

Development in the Asia Pacific

The international shipping hub is going to shift eastward with the increased trading and rising economic strength of the Asia Pacific region. Through high-quality port services, Hong Kong and Shanghai have achieved tremendous success and growth. This shift is occurring fast and the trend is only strengthening. In the times to come, the development opportunities are only going to increase multifold.

Competition due to alliances

The rate at which companies are consolidating through alliances is increasing. A larger ship size doesn’t just allow companies to pool in their individual resources and enhancement of hardware, but also greater bargaining power when making demands. This means there’s stiffer competition among ports.

Today, more than 80% of the total global shipping capacity is accounted by major liner alliances. And, more than 90% liner market share in Asia, Europe, and North America. Competition among ports will become more intense due to larger size of businesses afforded by larger number of fleets with shipping alliances.

2018-10-25T04:53:26+00:00

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