Topic > Global Trends Affecting Supply and Demand in Container Shipping Industry

Ten global trends affecting supply and demand in container shipping industry have been explained. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay There is less demand for shipping to and from the Far East. Due to China's rapid economic growth over the past two decades, global seaborne trade has increased. China has had rapid economic growth in recent decades, and the country has been a tremendous force in increasing global trade. However last year we could see the expected growth actually decline, which led to lower demand for shipments to and from the Far East. Overcapacity in the container segment does not correspond to financial cycles. Another important factor in the balance between supply and demand is timing. Giant ships of 14,000 TEU or more must adapt to financial cycles to ensure a balance between supply and demand. This is a difficult task in a volatile market where prices move vigorously and unpredictably. Fewer containers support export demand to and from the Nordic countries. We know that the crisis in the world affects world trade. Crises in the Middle East, not to mention Ukraine, led to the Russian embargo and reduction of imports into Russia. This has affected the container shipping sector with decreased volumes through ports to Russia, via Finland and the Baltics. The result is fewer surplus containers in Finland and the Baltics that served to support the shortage of units on the east coast of Sweden to support export demand. Growth from new regions increases demand for containerized cargo. The future still shows a glimmer of light and growth potential in the container sector. China will continue to be an important market, but we also see growth coming from other regions with greater demand for containerized cargo. For example Nigeria in Africa; today they have a population of 174 million people and it is expected that in 2050 they will reach 440 million. Industries adapt their cargo to the container shipping method. Another trend is that industries are adapting to containerization. For example, the paper industry has adapted its cargo to the container shipping method, matching the size of paper rolls to containers. The cargo is transported directly from the factory to the recipient, or even directly to the consumer, to make it more efficient and reduce the risk of damage. We are moving from Roro ships to container ships for short sea shipping. RoRo vessels currently dominate short sea shipping within SECA areas. But the intra-European market is increasing year by year and now we can see a clear trend that container ships increase their intra-European market share. Container ships are more efficient and flexible than RoRo ships, which today are relatively old and few new RoRo ships are on order. Increase in raw materials, malt, peat, fertilizers and wood. In general, there is growth in world trade and some even predict that over the next decade, 90% of global goods in general will be shipped in containers. Raw materials such as malt, peat, fertilizers and timber are now being containerized to a greater extent. (In reality, if all timber in Sweden were shipped in containers, the total Swedish container shipping market would grow by 100%, based on.