Industry Analysis & Industry Trends
Overcapacity is the only certainty the industry faces in the coming years. The industry is dependent on strong global growth and continuing globalization to strengthen. The threat of a collapse in the Eurozone or a double-dip global recession remains real. On the other side of the equation, the imbalance of supply of ships to demand for shipping services will take longer to resolve. Segments of the industry, such as container shipping, are engaged in a race to build the biggest ship. The operator with the biggest ship captures the lowest cost structure and competitive advantage; however, the cumulative action has driven freight rates down and is expected to keep them there... read more
The Global Containerized Shipping and Logistics industry is estimated to transport 80.0% of the world's freight by volume and 60.0% by value. Even so, the boom in shipping demand that the industry experienced through 2008 has come to an end. Over the five years since, revenue fell an annualized 0.6% through 2013, compared with double-digit growth in years prior. In 2013, revenue is forecast to grow just 3.6% to $166.1 billion, compared to a jump of 10.9% in 2008.
Strong growth before 2009 was due in part to steady world economic growth and was outpaced by concurrent growth in the volume and value of merchandise trade as global supply chains increased in complexity, global shipping increased in capacity and sophistication and barriers to trade fell... read more