We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Economic uncertainty roils maritime container shipping, report says
newsworthy

Economic uncertainty roils maritime container shipping, report says

July 5, 2019
DC Velocity Staff
No Comments

The maritime container shipping market faces disruption in 2019 due to mounting economic uncertainty triggered by tariffs on international trade, according to a report from the shipping consultancy Drewry.

Citing those conditions, Drewry on Wednesday downgraded its forecast for global port throughput growth in 2019 to 3.0 percent, from its previous prediction of 3.9 percent.

"We remain confident that world trade will rebound in 2020, but much will depend on developments outside of carriers' control," Simon Heaney, senior manager, container research at Drewry, said in a release. "Further spreading of protectionist policies could stunt growth, particularly if the U.S. aims its tariff target at other trading partners."

The sector faces "concerns of a slowing global economy" due to three immediate causes, the June edition of London-based Drewry's quarterly "Container Forecaster" says. Headwinds hindering the container market include: the ongoing U.S.-China trade war, escalating geo-political tension in many regions of the world, and an industry grappling with challenging new emission regulations.

Those regulations will be set by industry group the International Maritime Organization (IMO), which plans to institute in 2020 a strict cap on sulphur content in marine fuels, a change which is already pushing fleets to buy new fuels, install emissions scrubbers in ships, or apply "slow steaming" rules.

Those three recent factors exacerbate another level of shipping industry concerns, considering fundamental changes to global consumption habits caused by long-term effects like the regionalization of manufacturing supply chains and the growing momentum behind low carbon, environment-first buying patterns, Drewry said.

"Carriers can be forgiven for not having all of the answers in such times. One suspects that even Nostradamus would throw his hands up in despair; such is the volatility of the leading characters," said Heaney, who is also editor of the Container Forecaster. "There will undoubtedly be some errors along the way and the risk of temporary supply issues has undoubtedly been raised, either from too many cancelled sailings or misplaced capacity transfers between trades."

The report did contain one point of optimism, noting that there could be some upside for trade if more manufacturing production is relocated outside of China. "The Asian export powerhouse has progressively reduced its requirement for foreign inputs, choking off demand for intermediate goods, so any shift to less self-reliant economies should give trade a bit of a kick-start," Heaney said.

Market disruption, a slowing global economy, geo-political tensions, regulatory change. Our industry-leading analysis can help your business chart a safe passage through the uncertainty. Read the press release at https://t.co/9JwnnuLfXe #containershipping #forecasts pic.twitter.com/sLBzl3isYv

— Drewry (@DrewryShipping) July 3, 2019
Transportation Supply Chain Services Maritime & Ocean Business Management & Finance
KEYWORDS Drewry Shipping Consultants
  • Related Articles

    Maritime container rates continue volatile churn, Drewry says

    Maritime container rates hit all-time high, Drewry says

    U.S. sea imports to hit all-time record in August due to labor uncertainty, report says

Recent Articles by DC Velocity Staff

Air cargo demand slumped in 2022 after “extraordinary” levels in 2021

Logistics gives back: February 2023

Intermodal sector weathered a “challenging” year in 2022, IANA says

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Schneider welcomes first battery-electric truck

  • Fred Smith is not worried about Amazon

  • RJW LOGISTICS GROUP EXPANDS RETAIL LOGISTICS OPERATION TO DALLAS

  • Maersk deploys indoor drones for warehouse inventory counts

  • Outlook 2023: What’s in store for logistics/supply chain?

Now Playing on DCV-TV

C8c3bc6b a91d 4181 a18f 35f288257630

ACPaQ: Fast and reliable automated mixed case palletizer

DCV-TV 4: Viewer Contributed
Fully Automated Mixed Case Palletizing ACPaQ is a universally applicable solution for fully automated order picking of mixed case pallets based on customers‘ requirements. Its software allows you to customize the palletizing order to increase efficiency during in-store replenishment. The mixed case palletizer...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing