Demand for port equipment will continue to grow at least until 2027 (according to analysts)
The demand for port equipment will continue to grow worldwide until at least 2027. That is what various market analysts* report in their (paid) reports as a result of the increasing demand for container handling, bulk handling, and ship handling equipment. Our contacts at various ports also confirm this trend. In addition, we can decipher the growing demand for container transport from the various tables in the white paper of World Shipping.
So what is driving the increasing demand for ocean freight? Why do our ports have so much work loading and unloading ships, clearing customs, and transporting containers by train or truck over land?
- Trade figures show that commerce between countries is still expanding. With that, the demand for mutual transport possibilities is also growing.
- When looking at transport options and costs, shipping still appears to be the most accessible and cost-effective option. Sea transport wins on cost price when the delivery time allows this transport mode because it can handle large quantities of cargo at once.
- Due to the growth of exports and rising transport prices, end customers increasingly choose to fill an FCL instead of an LCL.
- Recent trade agreements (e.g., between superpowers United States and China) have led to more relaxed transactions in recent years. The growth in maritime transport benefits all economies involved.
- The growth in maritime transport is bringing prosperity around the world. Governments feel the need to innovate or expand their ports. They take initiatives to make the sector more attractive by investing themselves and/or making projects investment-friendly for commercial parties.
* Sources: Mordor Intelligence, Fortune Business Insights, Global Research Consulting
Price increases
As of 2020, the price of ocean transportation has exploded. We all know what that started with: the corona pandemic. In the first half of 2020, many production processes and trade shut down as we went into lockdown. Halfway through that year, we realized that the production chain couldn't stay shut forever. Factories restarted their operations, causing imports and exports to rush back in, resulting in a huge imbalance between supply and demand.
Not only did the cost of a container, a spot on an ocean liner, and port handling go up, but in recent years, also the cost of processing and transporting cargo over land increased. However, that did not turn out to be the end of the price increases.
Since the beginning of 2022, we have been experiencing an 'energy crisis' and, in several European countries, labor shortages as well. These factors play an additional role when it comes to rising transport costs by sea. Sky-high prices for fuel and higher salaries to attract or retain workers in European ports are the result. Consequently, the average price for sea transport has increased by a factor of five.
How can you make money and save?
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Do you have any questions about this article or our services? Please feel free to contact us.
