Tag: shipping market

BIMCO analysis on the critical issues of the shipping industy

According to AlixPartners 2015 Container Shipping Outlook, the global container carrier industry remains challenged entering 2015.

ECSA and Clarkson have issued report on the Tramp Shipping Market. Thereport provides a briefing on the organization and competitive economic structure of the tramp shipping industry.

Overall confidence levels in the shipping industry fell during the three months to February 2015

Ocean freight rates for cargoes moving under contracts on major East-West routes have increased for the first time in years

Global dry cargo demand growth, forecast at 5% per annum from 2016 to 2019, to be offset by falling project cargo volumes

Three ULCS with nominal respective capacities of 13,000 TEUs each, called APM Terminals Pier 400 Los Angeles

The need for shipping alliances to reach out to customers The Global Shippers Forum (GSF) has called for a manageable but rigorous set of monitoring KPIs that can provide the required level of confidence to customers that ocean shipping alliances can deliver tangible benefits in terms of reduced costs, competitive ocean rates and improved services for shippers.Speaking at the Transport Week Conference' in Gdansk, Poland, Chris Welsh - GSF Secretary General - outlined the need for shipping alliances to reach out to customers and start showing demonstrable improvements in service quality and innovative solutions for shippers. A necessary first step is to sort out the current lack of reliability and predictability of their joint operations which is adversely affecting shippers' maritime and logistics supply chains.Chris Welsh said: "Shipping alliances need to take responsibility for monitoring, measuring and benchmarking their performance on key trade routes to demonstrate enhanced alliance performance, and make that information transparent to regulators and their customers as evidence of their commitment to showing the pro-competition benefits of improved alliance services."During his presentation entitled Maritime Alliances - A Customer's Perspective' Welsh stated that the first thing the alliances could do is sort out the reliability and predictability of ...

Teekay video

Analysis by Boston Consulting Group According to an analysis by the Boston Consulting Group, the container-shipping industry has a highly fragmented value chain, marked by complexity, overcapacity, and low returns.On the "sea side" of container shipping, the industry's value chain comprises five main segments: brokers, financiers, owners, builders, and carriers. Each segment is highly fragmented, with many companies competing for market share and excess capacity everywhere. For example, across the chain, most leading companies command market share of only about 10 to 15 percent, while in each segment the top ten companies cumulatively account for less than 50 percent of market share.This dangerous combination of fragmentation and overcapacity has fueled a downward spiral that has decreased earnings and, thus, shareholder value. Since early 2012, total shareholder return (TSR) for all segments in the industrys value chain has underperformed the MSCI World Industrials Index. Carriers TSR has fared the worst. While the MSCI almost doubled from 2012 through 2014, listed carriers TSR showed almost no gains.What can explain these disappointing figures? In part, most of this industry's segments are experiencing destabilizing change.Ship Financing: Some large, traditional European banks started to withdraw support from the industry following the demise of Germany's KG ...