Monday 3 March 2014

Our Outlook on the Container Shipping Industry in 2014

The opinion of analysts throughout much of the global container shipping industry is that the worst has past, and the sector’s recovery is well underway.

It has taken years of improvements in inefficiency, whether they be vessels, ports or partnerships, to move the industry in a position to be profitable, once again. Here are the things that manifested themselves in 2013, and have demonstrated that they will have a positive effect on the international shipping industry in 2014, and well beyond.

Shipping Port Investments

All over the world there have been trillions of dollars invested in shipping port improvements. Many of these were badly needed to accommodate the larger more efficient vessels that have entered the global container shipping fleet. Investments have included dredging, extending piers, building/expanding container terminals and introducing more ship-to-shore cranes to improve performance.


More Efficient Container Ships

Many of the leading container shipping lines have made sizable investments in larger more efficient vessels, like the Maersk Triple-E fleet for example. These incredible ships were designed and built to be among the most efficient afloat. In doing so, companies like, CMA CGM and Maersk Line are improving the performance of their fleet and earning more profit.

Important Partnerships

Another method used by industry leaders to become more efficient has been strategic container shipping partnerships. This approach to improving efficiency has industry leaders pooling and sharing certain resources, on major international trade routes. The most recent, and perhaps most notable, the P3 alliance would see the world's top 3 container shipping lines partner and share cargo space, on a number of their vessels and routes.


The combination of these 3 improvements from 2013, will re-introduce the prosperity and profitability that have been synonymous with the global shipping industry in the past. At the moment, there are a number of investment opportunities that have emerged, including investing with Pacific Tycoon; that are benefiting from the industry's strong recovery. Because of this, investors are taking notice of the sector's significant improvements and are taking the time to review their investing options, including the opportunity to invest in shipping containers.

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