Every year sees new advancements and processes for the ocean shipping industry. Marine companies and the shipyards that build for them are always looking toward the future to see what trends will be coming down the line. The future is now when it comes to new technologies and more, so it’s imperative that organizations stay on top of their game. Here are some of the projected ocean shipping trends for 2019.
- Increased manufacturing in Southeast Asia. There are some interesting things taking place in the manufacturing sector of China. The country is moving a lot of its industry to the interior western areas, which impacts the cost of transportation. This means that coastal or island countries with easy shipping access are picking up the slack when it comes to shipping. This will be an interesting trend to watch this year.
- The effects of U.S. and China trade talks. Its also not unrelated to the U.S. and China trade talks. The trade war and unexpected tariffs are already affecting U.S. manufacturers and will continue to play a role throughout the year. This, in conjunction with the low-sulfur fuel regulations going into effect at the beginning of 2020 will impact the shipping industry.
- Consolidation across the industry. It is also expected that some shipping companies will begin to merge with others this year and beyond. Smaller shipping companies will be specifically targeted to absorbed by larger shipping organizations, which will have a rolling effect throughout the industry.
- Increased used of blockchain technology. If you believe that blockchain is just a fad or only related to cryptocurrency, then it would be a good idea to take a closer look. Blockchain has long-range reach and it’s expected to affect the shipping industry in 2019. There has already been an impact with the use of letters of credit and other areas of the industry.
- Renewed focus on customer demands. Ultimately, it all comes down to responding to customer demands in the best way possible. Many shipping companies are already taking the lead on this by providing premium services such as faster loading and unloading, guarantees for loading, and more. Carriers will begin streamlining their services in 2019 to better answer the demand from customers.
Do you want to know more about the trends affecting the marine industry? Talk to the team at Hutco.