With the introduction of the modular construction, shipping containers have been come into great use at a reasonable cost, right? Its wide range of usages in the construction industry witnesses the highest growth owing to an enormous height in the global economy as well. Both the trade volume and GDP experienced a good increase in 2017.
Being the sea-borne trade it is still expected that it has much way to go in contrary to the previous years. Also, a large potentiality can be observed for it to serve the rail freight industry at the same time. But due to the protectionist measures of some countries is there regarding the freight height the business expansion may get limited to some extent only
Additional costs will get incurred by the water-based coatings for the environmental regulations. Whichever may be the key aspect, here we will go through the scenario of the shipping container market and see how the changing environment impact these day’s business owners. So, let’s get started.
Expansion of this sea-borne trade for driving the shipping container market
Before we drive to anything else, we must start from the very basic. It will give you a clear idea about the things happened actually and the way it occupies a vast piece of economy and business landscape
The shipping container is mainly built for exporting and importing goods from other subcontinents via sea-route. You can say it gives a new way to trade for the sea-borne businesses in a much feasible manner.
Over time, it has occupied 60% of the total water-transported businesses across the globe. This results a great impact on its value leading to the high usability of the shipping containers for sea freight transportation as well. So, it can be concluded that the sea-borne trade is the main reason underlying the significance of this containers and for driving its market.
Also, with the passing days the demand for new and advanced containers propels. Hence, the larger-sized vessels with above 8000 TEUs get increased by extra 4%. The productivity to meet the demand gets influenced as double as it was in back 2016.
Major developments in the world of shipping container market
Since its introduction for multiple purposes, it has undergone certain remarkable development periods. Those are mentioned below so that you can understand its importance in this era:
- October 2017: Shenzhen ZhongHong Equipment Technology formed a joint venture with China International Marine Containers (CIMC), ASTO Telematics, and HongYi Hi-Tech expecting to work for supplying smart container components
- March 2018:Siasun Robot & Automation Co. Ltd (Siasun) and CIMC Container have a made a contract stating the friendly cooperation in intelligent manufacturing field. After that, the “Flying Dragon Plan” of CIMC Container takes the charge for the renovation and upgradation of the production lines.
- March 2018: A joint initiative was formed by Carrier Transicold and Singamas Container Holdings Ltd launched PrimeLINE ONE. This was mainly done for the production and supply of refrigerated shipping container. It is known for its assembly on-site benefits as a substitute to the conventional bolting approach of full refrigeration system. It is done so by adding it in front end of the insulated shipping container
Factors that impact the driving of the shipping container market positively
There are numerous factors that impact the shipping container market directly. Some of them are mentioned here for your reference:
1. High demand of cargo transportation via ships
Cargo transportation via waterways gets highly demanded a couple of years back. It is due to the efficiency in transferring the goods to other ends or subcontinents. Moreover it is also regarded as the safest mode of transportation as well. Even in contrary to other modes of cargo transportation it is much affordable and makes the delivery possible within shortest time period.
As per Stats, 177.6 millions of containers with 998 billion tons are being delivered to other countries every year. The latest innovation in the giant players or commercial vessels comprised of navigation system and advanced sensors for influencing its efficiency in the long run. These latest features also contribute in influencing the market demand of the shipping containers.
2. Rise in the agreements associated with trade
A number of trade associated agreements have been made for the economical and business development within two or more nations. It makes the job of transportation of goods much easier than ever.
Furthermore, suppliers also select the water ways as the effective and better means of transportation at the same time. This creates an inclination towards the manufacturers of the cargo shipping containers in varied sizes and shapes to meet the demands of the suppliers.
But the facility of free trading contract is responsible for boosting the market growth at a good pace by cutting down the costs of taxes and duties. This trade activity also allows the importers and exporters to trade without paying any additional cost as taxes to Government of that particular country.
The bans related to the trace blocs are lifted to make the process much buttery and flexible. So this rise directly impacts the shipping container market complementing its growth and making its demand higher than ever.
Fluctuations in inventory and transportation costs
An appropriate transportation mode must be considered when huge amount of goods are being transmitted from one end to another be it region, district, state or country. The incurring cost for the transportation is reviewed as well to check whether it is efficacious or not!
Otherwise there is a high probability that it may create negative effect on the logistics. That’s why price is recognized as the key factor affecting every point of the logistic service ranging from primary function till the delivery of the goods.
The consistent fluctuation in the inventory and transportation cost greatly affects the shipping container industry by forcing some of the users to tend to some other modes of transportation to deliver the goods.
Anticipated automation trend in marine transportation
A step towards the automation in the shipping container industry is come out as a great help. It allows varied countries to show their interest in this business with the autonomous ship demonstration. These automated vessels can be used for both cargo and passenger transportation leading a golden opportunity to enormous growth in this industry.
For example- Finland based ferry operator Finferries and luxurious car owner Rolls Royce come with the earliest autonomous ferry. YaraBirkeland completely based on Norway is a complete autonomous container ship specifically designed for carrying passengers from 2020 onwards.
Electric vessels are also proposed to come in late 2020 with the hand of Yara collaborating with Norway-based Kongsberg. Therefore, on the basis of the automation in the shipping container industry, there is an expectation for growth including heightened safety measures in the world of shipping container market.
Key reasons for buying the market report
Before making an investment, it is pivotal to know about its marketing scenario or environment! Marketing report will help you in the following ways:
• Studying about the outlook of the future market in both emerging and developed environments
• Analysis of varied market perspectives by Porter’s five forces analysis
• Detailed analysis for the dominating nature segment of the market
• In the forecast period, the areas which are expected to face rapid growth
• Identification of deployed strategies by market players, market shares and latest innovations
• Free analyst’s report including estimate sheet of market for 3 months
Hope now you have much better idea regarding shipping container industry and market and can think of any future investment. Just consider the pivotal points before investing and review the market environment on a daily basis so that you can enjoy its full benefits and earn handsome.