Overcapacity is the only certainty the industry faces in the coming years.
Los Angeles, CA (PRWEB) September 18, 2013
The Global Deep-Sea, Coastal and Inland Water Transportation industry has struggled over the past five years. Rapid growth appears to have ceased, and future demand is contingent on the ongoing economic recovery. Due to lower global industrial production and less goods needing to be shipped, industry revenue fell in the five years to 2013. However, an extreme decline over the past five years has been avoided as increased shipping activity aided companies in the industry.
According to IBISWorld Industry Analyst Lauren Setar, “The industry has undergone some extreme changes in the past five years, particularly in 2008 and 2009.” During those years, major companies placed ambitious orders for new ships as they struggled to build their capacity to meet demand. Once the demand fell, however, shipping lines cut routes and staff and many pulled some of their fleet out of the water to remain viable during the downturn. During 2009, much of the world's container shipping fleet was not in active service, pushing down industry revenue. After a rebound in 2010, uncertain economic conditions encouraged low inventory levels on the part of the industry's clients. Nevertheless, as demand picks up due to greater consumer spending and larger trade volumes, industry revenue is expected to grow in 2013.
The Global Deep-Sea, Coastal and Inland Water Transportation industry has a moderate level of market share concentration. In 2013, the top four players are estimated to account for more than half of global industry revenue. Major players must be truly global to be competitive, and the top competitors include AP Moller - Maersk A/S, Nippon Yusen Kabushiki Kaisha, Mitsui O.S.K. Lines, Carnival Corporation, Neptune Orient Lines and Hapag-Lloyd AG (see IBISWorld report H4821-GL for major player market shares). Beyond the major players, the market is fragmented with a large number of small regional players or family-owned operations, especially in the coastal and inland water transportation segments.
“The industry's strength is dependent on strong global growth and continuing globalization,” says Setar. The threat of a collapse in the eurozone or a double-dip global recession remains real. However, the industry will remain an integral part of the global economy and is expected to benefit from greater shipping activity. Specifically, emerging economies will boost industry performance as larger countries lead the way in terms of revenue growth, which IBISWorld forecasts to grow in the five years to 2018.
For more information, visit IBISWorld’s Global Deep-Sea, Coastal & Inland Water Transportation industry report page.
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IBISWorld industry Report Key Topics
Establishments in the Global Deep-Sea, Coastal & Inland Water Transportation industry provide deep-sea, coastal and inland water transportation. Deep-sea and coastal water transportation includes that of passengers and freight over water, both scheduled and unscheduled. The inland water transportation segment includes the movement of passengers or freight via rivers, canals, lakes and waterways, including inside harbors. The industry excludes marine operations such as port operations and stevedoring.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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