It’s the active trading in Asia that’s pushing up container ship volumes globally. The growth is expected to climb by 5% in this year over 2012, supported by emerging export markets of South America, a leading shipping authority has said. The shipping industry has seen good demand from the intra-Asia long-journey market through the Middle East, the Asian short-distance market in Far East Asia and in Latin America. The official said he believed that the growth in these places will remain high in comparison to the global average.
In Hong Kong, a shipping official has stated that there are expectations of a hike in sales of containers this year, when scheduled delivery of vessels are expected to peak. This expectation is also based on the fact that there is a large accumulation of demand of containers for fiscal 2012, the official said. The official added that lots of shipping firms delayed replacing aging, old containers. They used them all through 2012, and so they are expecting a rush of orders in the next few years.
Receding Euro Crisis
However, the demand was soft in the initial six months of this year. It will go up slowly in the next six months of 2015. Demand for containers has slumped in the world’s East-West sector. This is due to falling consumer demand in the US and Europe because of their faltering economies. The confidence of good container sales gains credence when one considers the fact that economic instabilities of 2012, which include the Euro debt crisis, are receding, a shipping company handout says. This is making the path to the new trade smooth. Fresh spending appetite is also another factor that is positively affecting container demand. China’s robust exports are also an indication of global economic stability, the statement says.
Since 2009, when financial markets all over the globe crashed, a lot more shipping companies have been forced to depend upon the container company that they require to perform their contractual responsibilities. Indeed, the most updated figures show that container leasing takes up a major segment of the industry’s marketplace. Shipping firms realize that to lease a container is sometime costlier than owning one. This style of conducting their businesses provides them greater flexibility, lessens their overhead costs and has saved them a lot of long-term costs. In addition to this, the shortage of containers has created an opening for ship operators to create relationships that are long-term with companies that lease containers as well as invest in them. These companies fill the gap in domestic as well as global markets.
Sustained Growth Till 2015
A research report states that the container fleets of the world that are operating on a system of lease, grew in the years 2010 – at 8.8% — and 2011 when the growth rate was 9%. This growth is expected to sustain right up to 2105, the report stated, at a probable rate of 7% to 8% per year. Maritime analysts forecast that companies which invest in containers and also lease them will in all probability own 40 to 45% of the market share of containers sales at the end of 2015.
Author Bio :- Steve Chamley trades products from South America like footwear and bags. He supplies them unbranded to different shops in Australia and New Zealand.