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  • Essay / Global Trends Affecting Supply and Demand in the Container Shipping Sector

    Ten global trends have been explained which are affecting the demand and supply in the container shipping sector. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay There is lower demand for shipments to and from the Far East. Due to China's rapid economic growth over the past two decades, global maritime trade has increased. China has experienced rapid economic growth in recent decades and the country has been a formidable force for increasing global trade. However, last year we could see a decrease in expected growth, which led to a drop in demand for transport to and from the Far East. Overcapacity in the container segment does not correspond to financial cycles. Another important factor in balancing 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 global crisis is affecting global trade. Crises in the Middle East, not to mention Ukraine, led to the Russian embargo and a decrease in imports to Russia. This has affected the container shipping sector, with a decrease in volumes moving through the gateways to Russia, via Finland and the Baltics. The result is a decrease in excess containers in Finland and the Baltics which were supporting Sweden's deficit of cost units supporting export demand. The growth of new regions increases the demand for containerized goods. The future still shows a glimmer of hope and growth potential in the container industry. China will continue to be an important market, but we also see growth coming from other regions with increased demand for containerized cargo. For example Nigeria in Africa; Today they have 174 million inhabitants, and by 2050 they are expected to reach 440 million. Industries are adapting their goods to the container mode of transport. Another trend is that industries are adapting to containerization. For example, the paper industry has adapted its goods to the container shipping method by adjusting the size of paper rolls to fit the 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. There is a shift from Roro ships to container ships for short sea shipping. RoRo vessels currently dominate short sea shipping in SECA areas. But the intra-European market is growing year by year and we can now see a clear trend that container ships are increasing their intra-European market share. Container ships are more efficient and flexible than RoRo ships, which are now relatively old and few new RoRo ships are on order. Increased raw materials, malt, peat, fertilizers and wood. Overall, global trade is growing and some even predict that over the next decade, 90 percent of overall global freight will be shipped by containers. Products such as malt, peat, fertilizers and wood..