Tuesday 25 March 2014

Shipping Industry After Struggles And Trillions in Investment

shipping industry after struggles and investment

It would seem that after more than half a decade of struggles and trillions in investment, the global shipping industry is finally experiencing strong growth.

It would seem that after more than half a decade of economic struggles the global economy and the international shipping industry are finally experiencing stability and strong growth, that has not been seen since the days before the global financial crisis. This is encouraging news for an investment community that has struggled alongside, and are eagerly seeking signs of meaningful improvement.

In recent years, the momentum generated by the investment in gigantic container vessels and the expansion of the Panama Canal, has resulted in trillions of dollars being spent on funding upgrades and improvements to shipping ports and container terminals; in countries all over the world. Officials believe these investments are necessary to accommodate the steady rise in demand for shipping containers in existing and emerging markets, and also to prepare for the economic boom that economists have forecast will begin in 2015.

Making preparations of their own for the coming year, much of 2013 and early 2014 has been characterized by container shipping alliances formed in some of the most unlikely of places. Perhaps the strangest has been the proposed P3 alliance, between the industry's three largest shipping lines. Another surprise saw CSAV's shareholders approve the Hapag-Lloyd merger in late March 2014, and subsequently create the world's fourth largest container shipping company.

From the perspective of private investors, each of these monumental events have created incredible opportunities to profit from a reinvigorated industry, as well as strong economic growth in established and developing nations. The investment into bigger vessels and larger terminal capacities, have opened the door for contributions from the private sector like shipping container investments that help industry leaders maintain efficiency in the worldwide fleet, and facilitate the uninterrupted flow of consumer goods.

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