Discuss about "Modern shipping trend of current world"

There are certain modern shipping trends in the current world which redefining the maritime or shipping land scape and brings new out look to the sector.

The main trends are

• Protectionism
• Liner shipping consolidation
• Digitalization
• Excessive new capacity
• Relationship between ports and container shipping lines.
• Climate change
• Scale

PROTECTIONISM

The uncertainty due to political, geographical,economic and trade policy risks constituted a drag on the shipping activities. The development of inward looking policies and rising protectionist sentiment undermine the global economic growth and shift trade patterns.

LINER SHIPPING CONSOLIDATIONS

Consolidation or liner shipping consolidations through mergers and alliances are most common trend in the modern world.This rised due to the over supply of the shipping capacity of the  container vessels and lower  demand levels.

DIGITALIZATION

Digitalization, e commerce, belt and road initiative denotes the effcet of technological advancement in the shipping sector. The technological advancements and the reordering of global trade infrastructure brought implication in shipping and maritime trade. Belt and Road initiative, e commerce has the potential to give up a boost to the shipping activities.

EXCESSIVE NEW CAPACITY

If we take the supply side perspective the optimistic carriers competing for market share may order exessive new capacity  leading to worsened shipping conditions. This will affect the supply and demand, brings changes in freight, voltality and earnings.

RELATIONSHIP BETWEEN PORT AND CONTAINER SHIPPING LINES

The alliance restructuring, large vessel deployment makes changes and redefining the relationships between ports and container shipping lines.The main factors considered are the configuration of liner ship networks, distribution of costs and benefit between the container shipping and ports, and approaches to container ship  terminal concessions.

CLIMATE CHANGE

The shipping has an impact on the environment it emits carbon so inorder to curb the carbon and improve the environmental performance  of international  shipping remain high on the international agenda. The first strategy adopted in April  2018 by international maritime organization to reduce the emission of green house gases by atleast 50% by the year 2050.

SCALE.

The value os shipping canot be determined alone by the scale.The ability of the shipping sector to leverage relevant technological changes is also to be considered.