potential and suggestion in the container ship market
Ten years back world’s sea –going container carried
panamax-size container ships that have 5000 TEU capacity. But with the
development of the international trade, transport network and the logistics
needed much more larger container ships to do the trade between Europe and
Asia, Asia and West Coast America.
Economies of scale
Economies of scale is a universal word that use in the
container shipping industry. So vessels are getting larger and larger to
support this concept. To do so ports are expanding and collaborating to achieve greater economies of
scale in present. Also with the future plans of
transit much larger containers of the Panama Canal and the increasing
transit capacity of the Suez Canal will result to produce container ships that
carrying over 28000 TEU in the next decade. So these container ships will be
appearing in Asian, American and Brazilian ports sooner.
Arctic Warming and the Canada’s Northwest Passage
There is a future potential to allow the Canadian
passage to transit container ships for perhaps three months period for a year
because of the changing weather pattern of the global and warming of the
Arctic. Also from another 25 years Canadian northwest sailing season will be
extended from May to October because of those reasons. Because of that
container ships will tend to sail via Canadian passage from Asian ports to east
cost American ports and European ports.
World GDP and the container shipping
Since 2010 container shipping
industry wasn’t able to adapt to new typical where request develops by a various
of worldwide GDP development of one or even underneath.so the container shipping
industry has ended up with lower fleet growth than the demand growth. Because
of this IMF forecast that the coming years will neither improve or worsen in
the container shipping industry.
So maybe the future of the container
shipping industry will smaller than expected because of the imbalance between
the supply and demand
Growth of China
Asia has the market share of 64% in the containerized cargo.
The main reason for this is the development of the China’s trade among the
globe. 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 containerized
Suggestions to improve
When designing the network if the shipping companies
can use new utilized calculations and methods to make more effective decisions
rather than using outmoded approach will be result for the high varied supply
that matched with the demand in the sea trade.
Also the shipping companies must help to find new
techniques and ways to motivate the employees to search for the improvement of
the industry rather than just thinking about how to increase the capacity. Also
the shipping companies must be ready to bet on the future opportunities and
they must be able to get the maximum benefit from each opportunities by acting
after analyzing the past data belong to each situation. So with that shipping
companies will be able to achieve the desired profit.
With the technical revolution and the logistic network
shipping companies can gain the real time data about the operations. So if they
can have some transparency in their operations with other shipping companies
and make alliances it will be reduce the cost and improve the service of the
Other main thing is increasing the commodities such as
timber, malt and fertilizers. These things are shipped in containers. So the
shipping companies can forecast the increasing demand for these components and
supply according to that. So with a better analyzing about the trends with the
help of the new information technology, logistics network and the engineering
technology they can identify the capacity of the container ship is needed for
the each trade and the region.