Industry Analysis & Industry Trends
The Freight Transport by Sea industry in China is mainly engaged in shipping exported items to their destination countries and territories from China. Therefore, industry performance is extremely sensitive to the global economic climate, which determines the demand for Chinese goods.
Over the five years through 2013, industry revenue has been increasing at an annualized rate of 12.2%. In 2014, industry revenue is set to reach $33.1 billion, up 8.9% from 2013. A new round of oil price increases was announced in 2013 by the National Development and Reform Commission (NDRC), which has created a more challenging environment for industry enterprises. In addition, the appreciation of the yuan will limit export growth and industry demand, and subject industry players to exchange losses.... purchase to read more
Industry Report - Industry Key Buyers Chapter
The International Transportation of Freight by Sea industry is highly concentrated: the top four companies account for an estimated 70.8% of total revenue. These four are large state-owned companies under government administration, which makes it easier for them to get government support.
International freight shipping is reliant on high investment into fixed assets like ships, and its business has economies of scale. Therefore, government capital plays a dominant role and the business is concentrated in the major state-owned players.
The concentration level increased slightly over the past five-year period. Smaller players are less likely to weather economic challenges when both demand and shipping price drop as they did in 2009... purchase to read more