Top waves hitting ocean shippers in 2017
Journal of Commerce writes,
“2016 was one of the wildest years in container shipping history. Within one year, the industry witnessed the largest bankruptcy in liner history with Hanjin Shipping, historically low spot rates, the narrowing of the Top 20 global container lines to 14, and the dramatic reorganization of global shipping lines into new, larger vessel-sharing agreements. With the industry in such a dynamic state.”
The JOC goes on to state that there are some hot topics in 2017 and incorporates a helpful slidewhow and summary on each topic. Some hot topics include:
- Pricing gets shakier – One of the biggest question of 2017 is: how will pricing and capacity develop?
- More consolidation? – Container line losses for 2016 are estimated to range from $5 billion to $10 billion when the year’s accounting is wrapped up.
- Alliance adjustments – This new year brings new vessel-sharing agreements into effect in April.
- Labor and employers squaring off – 2017 will be pivotal year for longshore labor relations in US ports.
- Big ship to test US ports – As the new alliances deploy larger ships, US ports must invest in infrastructure and take new approaches to terminal operations so they can effectively handle the cargo surges.
- Terminals and ports band together – Nothing the operational and cost efficiency container lines generated by teaming up with rivals, ports and terminal around the world have started to do likewise.
To read more about this, please visit Journal of Commerce.