SHIPPING- *Trends in the container market.
Byline: S.KAMAL HAYDER KAZMI
International Experts identified that this market is "the closest to the consumer" and, by its nature, the demand is strongly driven by the GDP developments globally, demographic developments and, not least, changes in per capita income in regions and large countries. Underpinning this trade is the development of goods containerization.
The Experts have seen tremendous developments in this area over the last 30-year. The Present condition is not very optimistic, with an imbalance between supply and demand. Ships on order represent approximately 25 percent of the existing container fleet. The Condition is more optimistic for general cargo, as that fleet is shrinking somewhat in size.
Container vessels are moreover taking market shares from reefers and roll-on/rolloff vessels. The Container feeder vessel market is experiencing competition in parts of the world, in Europe, in particular, and is losing out to the direct service offers of larger container vessels with lower bunkering costs per unit. Container business developments are influenced through ongoing changes in trade patterns, some of which can be regarded as emerging long-term trends.
The Experts see a slowdown in the growth of the mainline trades, Asia-North America and AsiaEurope, and a rise in the Europe-Middle East, Middle East-Asia and South AmericaAfrica-Asia trade routes. Mainline trades are growing at about 5 percent per annum whereas nonmainline trades are growing at an annual rate of 10 percent or more.
The growth in Inter-Asia and Inter- China trade is SHIPPING *Trends in the container market even stronger. Presently China is building a self-sustaining supply chain between itself and developing nation...
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