INTRODUCTION

For decades, since 1960s, the growth in container shipping volumes have outpaced global economic growth. At times, growing four times as fast as global GDP, reduced to just two after 2008 crisis and now it is down to less than 1.5. In coming years, in the light of on-going trade war and near-shoring, it could potentially come down to just 1.

 

Info Graphic: global container shipping market, Container Shipping Market

FREIGHT MOVEMENT

The US-China tariff war has hit container volumes between the two most important region Stand freight traffic is down by ~7% (Jan-Sep 2019). Vietnam has emerged as the biggest beneficiary of this and its exports have jumped by ~32% in the same period.

 

FREIGHT RATES

Ocean freight rates are among the biggest indicators of global trade health, higher rates equate to higher freight demand and vice-versa. Another important metric is the number of containers in global circulation. There were ~ 22 Million 20-foot-equivalent units (TEU) containers in circulation as of Sep 2019.

As od Sep 2019, the freight rates have been declining in all US and European trade routes for past few months. The freight rate between Shanghai to the US east coast was ~$2,700 for a 40Ft container in Aug 2019, ~24% lower than same period last year. As this is the time when retailers and distributors stock up good for upcoming holiday season, the declining rate are certainly not at all a good sign.

The additional 71 ultra large ships (14,500 TEU+ capacity), which will be delivered by 2021 end will further bring down the rates.

 

LEGISLATIVE CHALLENGES

On January 1, 2020, the International Maritime Organization (IMO)’s rules on sulphur emission come into force – it will have a significant impact on the shipping industry. This legislation will ban any penalize and ban any ship emitting more than 0.5% of sulphur in its fuel, a sharp cut of 3% from present level. Therefore, planning for this low sulphur exhaust implementation will be one of the container shipping industry’s biggest challenges in 2019.

 

MARKET SIZE AND FORECAST

The volume carried by container shipping is expected to be double by 2030. However, in the few years, the industry has been operating at a loss. If we look at YTD 2019, global container shipping volumes were just ~1.3% higher than in the same period of 2018.

 

COMPETITIVE LANDSCAPE

Following two years of deep consolidation which has resulted in an oligopoly status on major trade routes, consisting of just three main alliances –2M, THE Alliance, Ocean Alliance.

 

MARKET SHARE  OF SHIPPING COMPANIES BEFORE CONSOLIDATION

container-shipping-market-share before consolidation

Source: Internal database

COMPANIES PROFILED

  1. P. Moller Maersk
  2. MSC Shipping
  3. CMA CGM
  4. COSCO
  5. Evergreen
  6. Hapag
  7. OOCL
  8. YMMTC
  9. Hamburg Sud
  10. NYK

 

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

  1. The market size (both volume (Million TEU) and value($Billion) of container shipping market in 2019-2025 and every year in between
  2. Latest freight rate trends in container shipping market
  3. Impact of blockchain on container shipping market
Sl noTopic
1Market Segmentation
2Scope of the report
3Abbreviations
4Research Methodology
5Executive Summary
6Introduction
7Insights from Industry stakeholders
8Cost breakdown of Product by sub-components and average profit margin
9Disruptive innovation in the Industry
10Technology trends in the Industry
11Consumer trends in the industry
12Recent Production Milestones
13Component Manufacturing in US, EU and China
14COVID-19 impact on overall market
15COVID-19 impact on Production of components
16COVID-19 impact on Point of sale
17Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21Product installation rate by OEM, 2020
22Incline/Decline in Average B-2-B selling price in past 5 years
23Competition from substitute products
24Gross margin and average profitability of suppliers
25New product development in past 12 months
26M&A in past 12 months
27Growth strategy of leading players
28Market share of vendors, 2020
29Company Profiles
30Unmet needs and opportunity for new suppliers
31Conclusion
32Appendix

 

Back to top
X