Tuesday, 24 June 2014

Shipping Leaders Invest to Stay Ahead of Growing World Economy

Shipping leaders know it is vital to stay ahead of consumer demand and global economic growth. Failing to do so means economies will be in danger of decline.

In recent years the shipping industry has made significant improvements to many aspects of the cargo container transport industry and since the turn of the century have continued to demonstrate their ongoing committed to improving world trade. In order to be successful, shipping industry leaders know that it is vitally important to stay one step ahead of consumer demand and global economic growth. Failing to make the necessary preparations means that the world economy would not function efficiently and in turn, economies would be in danger of decline. In order to be successful, leading shipping lines know that it is all about delivering the demand, whenever and wherever it is needed.

Looking to the past and present, the global container shipping industry has done well at accommodating the rising demand throughout the years and appears to be ready to handle demands from the new, prospering global economy that is expected to double before 2020. In order to stay one step ahead, the industry has embarked on the new era of giant, ultra-large container vessels, capable of transporting more than double the amount of containers, when compared to shipping vessels from the beginning of the 21st century.

In 2000, approximately 13 percent of all of the world's consumer goods were transported by shipping vessels that were able to carry more than 5,000 TEU. Nowadays, that number has grown to about 50 percent. Some industry experts expect the percentage will grow even higher, particularly after the opening of the expanded Panama Canal in 2015. That said, shipping industry leaders will have to continue to make good investments ahead of time, based predominately on what they forecast demand will be in the future. In the shipping industry it’s always been that way. Huge investment risks are constantly taken but the rewards in the future are also great and to date, the industry leaders have made few mistakes over the years.

Just like when private investors make an investment, the common investing risks and rewards are examined along with certain growth projections, to determine whether or not to invest. In this instance, it is wise of industry leaders to make investments into upgrading shipping facilities and super-sizing their shipping vessels, to become more profitable at what they do. As the global economy continues to grow, consumers worldwide can be re-assured that shipping leaders like Maersk Line and the Mediterranean Shipping Company will be there to meet the demand for consumer goods and deliver steady returns to investors. With that being said, members of the investment community who have invested in the shipping industry, can be confident that their investment will be in constant demand in the future and maintain its value and profitability for decades to come.

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