Choppy waters: Overcapacity in the freight shipping market will temper growth

IBISWorld’s Ocean & Coastal Transportation market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.


Industry Threats & Opportunities

  • Lackluster global freight volumes have paired unfavorably with the expanding fleets of many carriers, creating intense price competition
  • The deep-sea shipping segment has suffered from an oversupply of ships
  • As the economy continues to grow and unemployment declines, per capita disposable income will rise

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    Industry Analysis & Industry Trends

    In the five years to 2016, the Ocean and Coastal Transportation industry sailed through stormy seas. Even though the economy has grown in the postrecessionary years, unemployment has remained elevated while income growth has stayed weak. Consequently, demand for vacation cruises has been tempered. In the coming years, increasing incomes and improving economic conditions in the United States and among its main trading partners will increase demand for cruises and sea freight shipments, thereby driving demand for industry services...

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    Industry Report - Industry Products Chapter

    This industry offers transportation services for freight and passengers. The industry offers services between US ports and to ports outside of the United States as well as the Great Lakes.

    Deep-Sea Passenger Services

    The deep-sea passenger services segment comprises an estimated 50.6% of industry revenue in 2016. Cruise ships are resort-like passenger ships that offer round trips lasting anywhere from three days to more than three months. In order to qualify as part of this industry, cruises must be of at least two nights in duration or they are classified in the Sightseeing Transportation industry (IBISWorld report 48710). Over the past five years, this product segment's share of revenue has climbed as demand for cruises steadily increased. Mor..

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    Additional Insights for the Ocean & Coastal Transportation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Ocean & Coastal Transportation Industry are

  • Business expertise of operators
  • Rapid Expansion and Reduction of Operations in line with Demand
  • User and Consumer Friendly Experiences
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Total trade value in the Ocean & Coastal Transportation industry impact industry performance..

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    Industry Products

    What is the Ocean & Coastal Transportation Industry?

    This industry provides deep-sea, coastal, Great Lakes and St. Lawrence Seaway water transportation. The deep-sea shipping activity includes US-flagged vessels and non-US-flagged vessels (company has to be primarily based in the US). Marine transportation establishments that use the St. Lawrence River are considered a part of the Great Lakes Water Transportation System and are thus included in this report. This industry also includes deep-sea passenger transportation such as cruise ships.

    Industry Products
    Deep-Sea Freight Services
    Deep-Sea Passenger Services
    Costal and Great Lakes Freight Services
    Coastal and Great Lakes Passenger Services
    Industry Activities
    Deep-sea water transportation
    Coastal water transportation
    Great Lakes water transportation
    St. Lawrence Seaway water transportation

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Total trade value
  • Industrial production index
  • US oil and gas production index
  • World price of crude oil

  • Current Performance
  • Cruise liner segment
  • Freight shippers remain in rough waters
  • Profitability and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Freight shipping market improves, but threats remain
  • Cruise lines expand
  • Profit and consolidation
  • Table: Ocean & Coastal Transportation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Ocean & Coastal Transportation Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Wheat, Barley & Sorghum Farming
  • Mining
  • Manufacturing
  • Wholesale Trade

  • Key Selling Industries
  • Boat Building
  • Port & Harbor Operations
  • Ship Building
  • Tugboat & Shipping Navigational Services

  • Products & Services
  • Deep-Sea Passenger Services
  • Deep-Sea Freight Services
  • Costal and Great Lakes Freight Services
  • Coastal and Great Lakes Passenger Services
  • Chart: Ocean & Coastal Transportation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Shipping
  • Chart: Major Market Segmentation for the Ocean & Coastal Transportation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent, utilities and marketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Ocean & Coastal Transportation

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Ocean & Coastal Transportation Industry

  • Industry Globalization
    Major Companies
    Carnival CorporationRoyal Caribbean Cruises Ltd.Norwegian Cruise Line Holdings Ltd.
  • Table: Carnival Corporation - financial performance
  • Table: Royal Caribbean Cruises Ltd. - financial performance
  • Table: Norwegian Cruise Line Holdings Ltd. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Ocean & Coastal Transportation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Ocean & Coastal Transportation Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Total trade value (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Break Bulk Cargo
  • Cargo that must be loaded individually and not in intermodal containers.
  • Coke
  • A solid material derived after coal is heated and the gas and tar are removed; coke can then be burned for fuel.
  • Conference
  • A route-specific agreement between carriers to charge common freight-rates; pool revenue, costs and profit; and engage in capacity management.
  • Containerized
  • To transport cargo by container.
  • Deadweight Tonnage
  • A measure of how much weight a ship is carrying or can safely carry.
  • Flag Of Convenience
  • The practice of a national owner registering one or more vessels in another nation in order to avoid higher regulatory and manning costs.
  • Just-In-Time
  • A strategy implemented to improve profitability by reducing inventory and purchasing the raw materials that are needed for the immediate term only.
  • St. Lawrence Seaway
  • A system of canals and locks that allows ocean-going vessels to travel from the Atlantic Ocean to the Great Lakes.
  • Teu
  • TEU stands for twenty foot equivalent unit, which is the standard size of a shipping container. TEU is commonly used as a unit of measurement for ship capacity.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Ocean & Coastal Transportation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Ocean & Coastal Transportation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Ocean & Coastal Transportation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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