The shipping industry is changing. Last year’s maritime outlook expressed that a transformation would occur in the sector in 2018, which I think was proven true. A joint venture by Shenzhen ZhongHong Equipment Technology was formed by China International Marine Containers (CIMC), ASTO Telematics, and HongYi Hi-Tech. With strong trade growth along the Maritime Silk Road in and out of China and the US losing out, a change in global trade patterns is possible. We may see further vessel-sharing agreements between carriers. Learn Where Your Knowledge of the Market Ends, How the Panama Canal Expansion Will Impact U.S. Other up and coming countries, such as Bangladesh, Myanmar, and Cambodia, face structural problems such as issues with reliability, consistency, and political instability. Another year begins for the maritime industry with new opportunities and new challenges. We expect IMO 2020 to raise the industry’s fuel bill by around 50% in 2020, which will certainly sharpen minds and serve to keep carriers on track.”. <<05AC7B3C8CBF8F4C9EB032817FB052F3>]/Prev 1347284/XRefStm 1324>> 0000020638 00000 n Demand for LNG is growing and already on the orderbooks for many new ships and retrofits next year. Here are our general expectations for 2019, solely based on our research and years of industry experience at MTS Logistics. We also forecast higher fixed-rate levels being negotiated, compared to 2018. Additionally, due to alliances between the steamship lines, it has become harder for BCOs to manage day-to-day operations. 0000007511 00000 n You may need to download version 2.0 now from the Chrome Web Store. 220 29 0000005857 00000 n 0000001502 00000 n Many carriers cancelled their services in anticipation of a slow peak season back in June. To be compliant with this new regulation, low-sulphur fuel needs to be used, and the cost-per-ton is expected to be significantly higher than IFO 380. China accounts for more than 90% of the world’s container manufacturing, with an advantage of low labor cost. In 2019 the deliveries of container carriers are forecast to 1.2m teu or 178 vessels, a decrease of 14% compared to 2018. New systems for ballast water management will also certainly grow in importance and popularity following on from the Ballast Water Management Convention introduced in 2017. These digital technologies are starting to revolutionize the sector and were a prominent theme at events such as SMM this year. And shipbreaking is due a facelift. Moreover, supply growth is expected to be below that of demand through 2023, which will assist the industry’s ongoing effort to rebalance an over-supplied market. 0000008444 00000 n Additionally, the growing number of container ships, and their capacity, also propels the demand for new containers. The industry is resilient and has shown that it can adapt quickly at times of stress, and we expect it to come out the other side in a stronger position.”. The growth in the reefer traffic is faster than that of the overall containers trade, and this trend is expected to remain strong during the forecast period. 0000002491 00000 n Every region is expected to see container port handling growth in each and every year of the five-year forecast horizon of the Container Forecaster, albeit at a slightly slower pace than Drewry was previously anticipating. However, once the U.S. started unexpectedly implementing tariffs, many importers accelerated their shipments and shipped to stock, in order to get protection against higher tariffs. • The containerized transport of goods, by sea, accounts for almost 60% of the total sea-borne trade in the world (in terms of value), and this represents the high usage of containers in the sea freight transportation. The trade volume of the world has increased by 4.3% in 2017, and the global GDP witnessed a 3.8% rise in 2017. “The degree of uncertainty is probably the highest it has been in a decade,” said Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster. Moreover, the global container fleet capacity grew by 1%, while the demand grew by 5%, which is nearly twice as much as in 2016. The demand for the perishable goods is growing across the world, with the rise in the middle-class population and the income levels. New forecasts suggest that the industry now faces the current oversupply situation for several more years. An agreement was formed between CIMC Container and Siasun Robot & Automation Co. Ltd (Siasun). Owing to the factors, such as growing sea-borne trade, and the increasing trend of containerization of goods, a strong demand for shipping containers is anticipated in the forecast period. 0000008890 00000 n greater than 8000 TEUs) grew by a substantial 4%, in terms of TEU capacity. What potential do these technologies offer to the maritime industry? The global Shipping Containers market is expected to witness high growth during the forecast period, owing to the rise in the global economy, leading to increase in the trade, in turn, boosting the demand for containers. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. China dominates the global container production, as well as, the container trade. Post-Chinese New Year shipment volumes will determine the fate of rate negotiations, which take place in April and May. startxref I observed that many Chinese companies are already positioning themselves in countries like Vietnam, and Indonesia is setting up factories in order not to miss out on this production shift. Cloudflare Ray ID: 5f1201577bdd0bb5 That being said, the Belt and Road Initiative (BRI) in China is set to increase trade and contribute to global fleet growth—which continues to rise steadily with the exception of shipbuilding. “There are a lot of headwinds facing the industry right now with IMO 2020 at the forefront, but there is also a danger that those fears become over-stated and that commentators unnecessarily talk down the market when the truth is that it is moving in a positive direction. 0000009066 00000 n Source: Drewry, A foggy outlook for container shipping, but a brighter tomorrow still likely, Online Daily Newspaper on Hellenic and International Shipping, This site uses cookies to enhance your user experience. h�b```b``�c`e`�ba@ ���$��@��$��-����`@L\���"�i6�è[!�V�a^��~G�)��56��LOl|�X�XjR�-KP�Y. Hence, the growth in the sea-borne trade is one of the significant factors that drive the shipping containers market. I look forward to what’s to come as a result. Mathias Rusch: Heading into the year preceding the IMO 2020 global sulfur limit, we can assume that environmentally friendly shipping will remain a huge topic, with systems such as scrubbers and emissions monitoring systems gaining momentum and market growth—especially in the cruise sector. Shipbuilding in the last few years has fallen after a huge surge surrounding the “peak years” of 2006 and 2008. 05/04/2019. 0000040933 00000 n After graduation he was recruited by MTS Logistics and he has been working at the company since 2005. This is also expected to boost the market for the refrigerated containers in the forecast period. Posted by Serkan Kavas | Dec 3, 2018 | Featured, Global Trade, Shipping Trends | 0 |. The shipping industry is changing. Shipping Containers Market - Segmented by Size, Type, and Geography - ... Carrier Transicold and Singamas Container Holdings Ltd, launched PrimeLINE ONE. This year, there was a 7% reduction in capacity, as a result of the cancellation of 3 vessel springs on the West Coast, and a 1.3% capacity reduction on the East Coast, due to one vessel spring cancellation. The industry is, or at least should be, bracing for uncertainty. Connected and automated systems are already showing potential to accelerate processes and increase efficiency through monitoring component condition, tracking emissions levels, or alerting crew to opportunities for fuel reduction. Shanghai port is the top container port in the world, with its throughput growing by 8.4% in 2017, reaching 40 million TEUs. Ports and Freight Traffic, How the Trump Presidency will Affect Shipping and Logistics. Such technologies can be used to enhance shipping practices, providing onshore teams with clearer insight into onboard practices such as with tools for remote management. in International Shipping News 05/04/2019. What I find particularly exciting is the emerging technology and increased digitization of the sector. Reasons to Purchase the Report. In the years to 2023, 1,086 boxships will … Most of the TEUs shipped are east bound, from Asia to North America (among the four container trade routes). Scrubbers in particular are on the uptake and likely to gain popularity in light of praises sung by the 25-company-strong Clean Shipping Alliance formed in October. In order to meet customer demands, more streamlined service attempts by ocean carriers will continue and extend to other carriers in 2019. Please connect with our analyst, who will ensure that you get a report that suits your needs. He graduated from Dokuz Eylul University with a Degree in Business Administration in 2001. “The anticipated rebalancing of the container market seems to have been postponed, which is more bad news for carriers that face substantial increases in costs as a result of the stricter 2020 fuel standards,” said Simon Heaney, senior container research manager at Drewry. Serkan worked his way up from the entry level to operations manager and to his current position as our VP of Imports at MTS Logistics. There has been an unexpected surge of shipments which started in July and continued until the end of 2018. Further regulations, incentives, and initiatives for ship recycling could start to make waves over the next few months. Although we don’t foresee any major merger in 2019, a full merger between carriers will take place in the near future. After a period with short-term container freight rates reaching record highs on many of the major container shipping trades, long-term rates are now also experiencing a boost. Technology and blockchain will grow in use. Is there an area in the industry you particularly look forward to seeing progress this year? Besides this, there exists a huge potential for shipping containers in the rail freight industry.

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