Futurepotential and suggestion in the container ship marketTen years back world’s sea –going container carriedpanamax-size container ships that have 5000 TEU capacity. But with thedevelopment of the international trade, transport network and the logisticsneeded much more larger container ships to do the trade between Europe andAsia, Asia and West Coast America.Economies of scaleEconomies of scale is a universal word that use in thecontainer shipping industry. So vessels are getting larger and larger tosupport this concept.
To do so ports are expanding and collaborating to achieve greater economies ofscale in present. Also with the future plans of transit much larger containers of the Panama Canal and the increasingtransit capacity of the Suez Canal will result to produce container ships thatcarrying over 28000 TEU in the next decade. So these container ships will beappearing in Asian, American and Brazilian ports sooner.
Arctic Warming and the Canada’s Northwest PassageThere is a future potential to allow the Canadianpassage to transit container ships for perhaps three months period for a yearbecause of the changing weather pattern of the global and warming of theArctic. Also from another 25 years Canadian northwest sailing season will beextended from May to October because of those reasons. Because of thatcontainer ships will tend to sail via Canadian passage from Asian ports to eastcost American ports and European ports. World GDP and the container shippingSince 2010 container shippingindustry wasn’t able to adapt to new typical where request develops by a variousof worldwide GDP development of one or even underneath.
so the container shippingindustry has ended up with lower fleet growth than the demand growth. Becauseof this IMF forecast that the coming years will neither improve or worsen inthe container shipping industry.So maybe the future of the containershipping industry will smaller than expected because of the imbalance betweenthe supply and demand Growth of ChinaAsia has the market share of 64% in the containerized cargo.The main reason for this is the development of the China’s trade among theglobe.
China imported and exported 52 million 20-foot equivalent units (TEUs) in 2015 compared with 13 million in 2000.So in near future China will gain more market share on the containerizedshipping industry. Suggestions to improveWhen designing the network if the shipping companiescan use new utilized calculations and methods to make more effective decisionsrather than using outmoded approach will be result for the high varied supplythat matched with the demand in the sea trade.
Also the shipping companies must help to find newtechniques and ways to motivate the employees to search for the improvement ofthe industry rather than just thinking about how to increase the capacity. Alsothe shipping companies must be ready to bet on the future opportunities andthey must be able to get the maximum benefit from each opportunities by actingafter analyzing the past data belong to each situation. So with that shippingcompanies will be able to achieve the desired profit.With the technical revolution and the logistic networkshipping companies can gain the real time data about the operations. So if theycan have some transparency in their operations with other shipping companiesand make alliances it will be reduce the cost and improve the service of thecontainer shipping.Other main thing is increasing the commodities such astimber, malt and fertilizers. These things are shipped in containers.
So theshipping companies can forecast the increasing demand for these components andsupply according to that. So with a better analyzing about the trends with thehelp of the new information technology, logistics network and the engineeringtechnology they can identify the capacity of the container ship is needed forthe each trade and the region. References https://www.bimco.org/news/market_analysis/2017/20170103-the-shipping-market-in-2016-and-looking-forwardhttps://www.ajot.com/blogs/full/the-future-of-container-shipping-may-be-smaller-than-we-thinkhttps://maritime-executive.com/editorials/new-sailing-routes-for-future-container-mega-ships#gs.H6rnnww