Exclusive extracts from this 116-page-long report:
- What is the business?
The sea transport industry encompasses four main market segments: container shipping, dry and liquid bulk shipping, as well as specialised transport (roll-on/roll-off, breakbulk, etc.). This report focuses on the largest segment, container shipping, which can be considered as the backbone of international trade. The container shipping business consists in loading merchandises in standardized containers and have them travel by ship across well-defined maritime routes to the destination country. […]
- What are the main markets?
More than ever, container shipping activity is concentrated in the East. Asia accounts for more than 60% of the global container traffic, with China being by far the leading country in terms of container port volumes. In 2017, container traffic at Chinese ports was four times higher than that of the US, the world's second biggest market by traffic. Moreover, six of the ten busiest container ports in the world are located in China. […]
- How intense is competition?
The global shipping industry is characterized by fierce competition between shipping lines, which negatively impacts their profitability. Indeed, the industry has been losing money in recent years. Shipping lines compete on factors such as punctuality, the number of ports where ships call, line frequency, and, more importantly, freight rates. Service differentiation is low and price competitiveness remains the number one differentiating factor. This gives shipping groups with the largest scale on a given line a clear advantage over competitors. […]