Sea giants... how far will they stop?
In its 2017 report on maritime transport, UNCTAD* points to a persistent imbalance between supply and demand, and wonders about the adverse effects of the high concentration of players in the sector, as well as the increase in the number and capacity of container ships...
Although stronger than in 2015 (+2.1%),In 2016, the increase in volume demand for maritime transport remains insufficient to offset the 3.2% increase in new capacities deployed at the same time by armaments: an imbalance that, according to UNCTAD, impacts the financial performance of the sector.
According to estimates, demand growth is expected to reach 2.8% in 2017, and 3.2%/year between 2017 and 2022.
In the container market, the largest in terms of value, the combined operating losses of all its shipowners amounted to USD 3.5 billion.
The weakening of shipping companies in the face of this crisis has led to a wave of recasting of alliances and mergers which is now leading to a concentration of the maritime freight market May « lead to oligopolies » According to the report.UNCTAD therefore suggests amending the rules governing consortia and alliances in order to defending the interests of shippers, ports and independent shipping companies.
As regards the size and number of container shipsThe report states that beyond their obvious impact on the imbalance between supply and demand, it is now clear that many countries are under an obligation to invest massively in infrastructure adapted to the needs of developing countries. new maritime transport standardseven though return on investment is not guaranteed: a particularly salient issue for developing countries...
* UNCTAD: United Nations Conference on Trade and Development
Editor(s): L. CARPANO / M. ANTIER
Source(s): www.l antenna.com / unctad.org