Rising trade with ASEAN countries will increase freight transport demand in China.
San Francisco, CA (PRWEB) April 28, 2013
The Freight Transport by Sea industry in China is mainly engaged in shipping exported items to their destination countries and territories from China. Therefore, industry performance is extremely sensitive to the global economic climate, which determines the demand for Chinese goods, says IBISWorld.
Over the five years through 2013, revenue for the Freight Transport by Sea industry in China has been falling at an annualized rate of 5.0%. The decline was largely due to the global economic recession, which led to industry revenue dropping sharply in 2009, says IBISWorld.
The International Transportation of Freight by Sea industry is highly concentrated: the top four companies, China Ocean Shipping Group, China Shipping Group, SINOTRANS / CSC Holdings, and Hosco Group, account for an estimated 68.3% of total revenue. These four are large state-owned companies under government administration. International freight shipping is reliant on high investment into fixed assets like ships, and its business has economies of scale. Therefore, government capital plays a dominant role and the business is concentrated in the major state-owned players, says IBISWorld.
Over the next five years, increasing trade with emerging markets, like the countries in the Association of Southeast Asian Nations, will support revenue growth. State-owned capital will continue to support the development of the industry, but advances will be limited by the necessary high investments in technology and safety operation, says IBISWorld.
For more information, visit IBISWorld’s Freight Transport by Sea in China industry report page.
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IBISWorld Industry Report Key Topics
Businesses in the Freight Transport by Sea industry in China provide cargo transportation services between China and other countries, including leasing ocean-going freighters equipped with operators. This industry only includes businesses that make trans-oceanic journeys using ships of Chinese nationality. Passenger delivery and coastal freight transportation are excluded.
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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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.