Industry Analysis & Industry Trends
The global shipping and logistics industry has spent the last two years at a major crossroads, where years of rapid growth appeared to be at an end, and future demand is contingent on ongoing economic recovery. Total real revenue in the Global Containerized Shipping and Logistics industry is estimated to increase from $151 billion in 2007 to $159 billion by the end of 2012. This represents a 1.0% increase on an annualized basis, with 3.4% growth expected for the current year. By contrast in the five years through to 2007, industry revenue grew 11.8% per annum. The difference in growth rates captures the alarming change of fortunes between 2008 and 2009. During this period, major companies placed ambitious orders for new ships as they struggled to build their capacity to meet demand... read more
Industry SWOT Analysis
IBISWorld estimates that the Global Containerized Shipping and Logistics industry is in the mature phase of its economic life cycle. The industry is determined by the demand for water transport, which picked up since the economic downturn in 2002, remaining robust for a number of years following. The bubble finally burst in mid-2008, with shipping prices plunging at alarming rates, profits squeezed, and several operators forced from the industry due to dwindling revenue and fierce competition. At this point, the industry fell to a low point from which it is gradually emerging.
Mergers and acquisitions are prominent in the industry. Major players have further expanded their market share in the industry, an example being Maersk with the acquisition of P&O Nedlloyd in 2005... read more