
Shippers consider availability of container space most important
Availability of cargo space is now seen by shippers and forwarders as the most important criterion of carrier service.
Availability of cargo space is now seen by shippers and forwarders as the most important criterion of carrier service.
Reefer container equipment availability will remain tight over the next few years, maintaining a CAGR of 4.5% over the next five years.
The outlook for the container shipping market remains soft despite the welcome boost of the ‘phase one’ trade agreement.
Ship operating costs inflation accelerated moderately in 2019 on higher repair & maintenance and insurance spend. Costs are expected to continue rising at a similar pace in 2020 on a hardening insurance market before receding in subsequent years.
Car carrier shipping is expected to continue its slow recovery, supported by improving utilisation and minimal vessel ordering. However, costs are rising while the trade outlook is vulnerable to rising geopolitical risk.
One of the major risks is the impact of IMO 2020 on containership supply. There is still no clear guidance on just how much additional cost it will land on the industry.
Reefer container equipment availability will remain tight over the next few years, maintaining a CAGR of 4.5% over the next five years.
Drewry’s container port demand forecast for the next five years is for global growth of 4.4% per annum.
Smart containers have increased in prominence in a very short space of time and the pace of adoption is expected to accelerate over the next five years.
Manning costs have risen moderately over the past 12 months, checked by easing officer supply shortage, and are forecast to rise at a similar pace over the next five years.
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