In this paper, we have had a brief overview on the key trends that form the supply and demand of the shipping industry and depicted the outcoming outlook for it in the coming years. The worlds shipping companies are going supersized. Find your industry below and gain perspectives and insights from some of deloittes. Mar 27, 2017 the next two years will be difficult for the global shipping industry as it struggles to address problems of excess capacity. While these financial pressures have been ongoing since 2009 due to several factors, overcapacity was certainly one of the most prevalent. This article provides an outlook of the shipping industry in 2018. Asia accounts for some 54 percent of global infrastructure investment needs to 2040, compared to 22 percent for the americas, the next largest region.
This new momentum could push global economic growth to 3. Global container shipping outlook 2017 the carrier communitys ability to drive rate levels higher into the transpacific contract negotiations will likely decide whether 2017 will be the turning point the industry desperately needs or just another bad year in a growing string of losses. However, the above trends will most likely make a positive impact in 2017. Waterways are the most economical means of bulk transport. This is indeed an outcome of the socioeconomic and political factors that are influencing both the supply and demand in the shipping industry and its context in the realm of international trade. In the chemical industry, it is used for ammonia production and fertilizer for agriculture. The year 2016 was tumultuous for the global shipping industry, as carriers were prone to financial pressures. The global transportation industry was dealt a year full of surprises in 2016, and with that came challenges.
Dec 24, 2019 that said, the financial crisis from the previous years has really impacted the shipping industry in a very big way. Top 10 deepsea container shipping lines and market share in deployed. I expect 2017 to be one of the most significant years for shipping. The shipping industry is currently encountered by myriads of serious issues including economic growth downturn, growing overcapacity, competing modes of transport, costattracting regulations, reluctance of investors and financiers, ship size growth and cascading effect. Overview we expect industry conditions to strengthen in 2018 for most of the. It is the most affordable and efficient mode of transporting goods, given the large volume of goods these vessels can carry for long. One of the worlds largest shipping firms at the time, hanjin faced a cash crunch as. Estimated country market share in world exports by commodity, 2017. What are the key trends, challenges, and opportunities that may impact your business and influence your strategy in the coming year. The size of the global logistics industry will increase usd 357. The industry accounts for transporting 90% of the world trade.
Global container shipping market 2020 worldwide overview. Faced with harsh headwinds, many shipping firms are now setting their sails for the incoming shifts and trends in the global shipping industry this year 2017. Dec 02, 2016 the global economy, listless these past few years, looks ready to rise, stretch and get a move on again. Global container shipping market 2020 worldwide overview by. Dry bulk freight rates will remain low due to subdued demand, though deferred vessel deliveries, cancellations and scrapping will help curb net capacity growth. Industry experts will not only make serious decisions to mitigate existing problems plaguing the shipping industry.
This growth in market size will be attributed to the rapid growth in the ecommerce industry, fueled by increased penetration of highspeed internet and a. Growth of the world fleet in deadweight tonnage, selected vessel types. Shipping industry is a vital part of the global freight transportation system. The shipping market cycle today 25% below 25 year trend. Global container shipping outlook 2017 supply chain 247 paper.
Focuses on the key shipping containers manufacturers, to study the capacity, production, value, market share and development plans in future. The worlds shipping companies are going supersized bloomberg. Dec 28, 2016 container shipping industry outlook 2017 2017 promises to be an interesting year. Moodys outlook on global shipping sector stays negative.
Aug 15, 2017 the same way that the bankruptcy of lehman brothers roiled the financial sector during the 2008 crisis. A look into global shipping trends in 2017 boxon logistics. Pdf outlook of shipping industry in 2018en researchgate. Mar 12, 2018 yet as trends indicate, the slight improvements do not have the momentum to transform the current trends of the global markets.
A year of transition for the global maritime industry. The major trends, growth drivers as well as issues being faced by the market are discussed in detail in this report. Moodys outlook on global shipping sector stays negative zoom as the shipping industry is expected to see its earnings worsen, while freight rates are likely to remain depressed amid ample supply, the outlook for the global shipping industry over the next 1218 months is negative, according to moodys rating agency. Jan 14, 2020 global container shipping market report 2020 2024 prime objective is to help the user to understand global and regional analysis of the container shipping industry. Dec 14, 2016 moodys outlook for the global shipping industry in 2017 is negative, reflecting continued oversupply and a 7%10% decline in ebitda. But the 2018 marine forecast for transpacific and other major shipping trade routes also notes that full recovery from the dark days of 201516 depends on a. Ebitda to stay steady 10 may 2017 tokyo, may 10, 2017 moodys japan k. In 2016 the dry bulk shipping sector experienced some of the worst market conditions in history. We take a look back at 2017 and forward to the current state of the industry and beyond.
Without shipping, intercontinental trade, the bulk transport of raw materials, and the importexport of affordable food and manufactured goods would simply not be possible. What to expect from shipping industry in 2017 infographic. In part 3 of the the biggest stories from the global shipping industry in 2017, which gives you a very good and practical overview of what happened in 2017 in the industry, patrik berglund, the ceo of xeneta, the premium freight benchmarking and rate analysis service, is quoted as below. Logistics industry overview market analysis, industry. Jan 31, 2017 the global shipping industry saw some serious ups and downs at the global economicpolitical level in 2016. The outlook for the world economy and seaborne trade is shrouded.
These findings are flanked by a digital2030 scenariofor the shipping industry, in which danish ship finance presents possible future directions for the industry in terms of business model innovation and value creation. Alixpartners analysis of publicly available financial reports figure 5. The terms countries and economies refer to countries, territories or areas. Global shipping is on course for recovery in 2018, but all. Global marine trends 2030 has been prepared by a team from lloyds register, qinetiq and university of strathclyde, using publicly available and proprietary information, and a scenario development methodology. The main markets are now past the trough of the cycle and, despite continuing low freight rates, there should be a gradual improvement ahead as the world industrial growth picks up and the. May 2017 and indicates possible future market directions. From brexit to the incoming american administration, it seems the prevailing sentiments are not too protrade. For most ocean carriers, the first three quarters were extremely challenging financially. Where possible, every effort has been made to reflect more recent developments. Pdf the outlook of shipping industry in 2017 and beyond. Shipping industry alanac 2016 shipping industry alanac 2016 the shipping industry almanac is published annually by the ey global shipping industry network, which comprises shipping industry professionals in over more than 60 ey member firms.
Why the global shipping industry will be tough to salvage. To analyze and study the global shipping containers capacity, production, value, consumption, status 202017 and forecast 20182025. Ports act as an economic catalyst and help in integrating smaller economies with the global the economic system. Global container shipping market report 2020 2024 prime objective is to help the user to understand global and regional analysis of the container shipping industry. Moodys changes outlook on global shipping sector to negative. It also presents longterm projections for transport demand to 2050 for freight.
The outlook of shipping industry in 2017 and beyond global. That said, the financial crisis from the previous years has really impacted the shipping industry in a very big way. Itf transport outlook 2017 itf transport outlook 2017 the itf transport outlook provides an overview of recent trends and nearterm prospects for the transport sector at a global level. International maritime trade development forecasts, 20172026. The outlook for the global shipping industry is stable, given that the aggregate ebitda of rated shipping companies will remain at similar levels in 2017 as last year, according to moodys japan k. Shipping has survived the worst downturn in memory, and now much more aligned to global. International maritime trade development forecasts, 20172026 18. The uncertainty and adjustments to global trade caused by the united states growing isolationism will only add to the pressure building on the sector. Technological developments and emerging issues in the maritime industry. The outlook for the tanker segment remains stable as low crude oil prices will continue. An article titled industry outlooks already exists in bookmark library. The international shipping industry is responsible for the carriage of around 90% of world trade. The 2018 outlook for global container carriers is decidedly mixed. In response, bimco produced a unique analysis model, named road to recovery to highlight actions needed for the struggling shipping markets to recover and to track their progress.