Container Shipping Industry Growth Has Inspired Investment

Many of the container shipping industry’s leaders have a positive outlook on the performance of the sector. Determination and patience over the past decade, particularly in the last two years, has rewarded them with higher freight rates and higher demand. This has renewed investor interest in investing in container shipping and it has given industry analysts something positive to speak about.

With the support of steadily rising global economic growth and cost-cutting initiatives, the container shipping industry is finally enjoying a return to prosperity and profitability. Having successfully arrived at these two destinations (prosperity and profitability), it is instilling confidence and inspiring investment in everything from container ships to shipping containers. Where there was once disappointment and loss, is now excitement, strong growth, and innovation.

Container shipping lines have been wise about their approach to investing after the financial crisis nearly a decade ago. Each of their investments have been made with the intention of increasing fleet performance, and improving operational efficiency. In some instances, this has resulted in a partnership, alliance, merger, or acquisition; a strategy that strengthens existing resources and reduces competition.

For container shipping lines – like Maersk, who also operate a port and terminal division – such as APM Terminals, the industry’s revival and continued growth has created the need for investment in port and terminal facilities as well. Bigger, more efficient ships require bigger ship to shore cranes and quays to accommodate their size and benefit from their improved design.

With contributions from Asia’s economic giants, like China and India, global trade is increasing each day. This keeps the world economy strong and performing well. In turn, the rise in imports/exports causes the demand for shipping services to increase and freight rates to improve. A win-win for container shipping lines, particularly for those who invest to match growth.

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