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The Cargo Shipping Market size is forecast to increase by USD 58.83 billion at a CAGR of 5.05% between 2023 and 2028. Numerous factors are instrumental in driving market growth, notably the escalating global trade volume, the uptick in mergers and acquisitions among vendors, and the rapid expansion of e-commerce, which significantly boosts demand for cargo shipping services. As international trade flourishes, businesses seek to streamline operations and expand their reach, leading to increased M&A activity. Additionally, the surge in online shopping fosters a greater need for efficient transportation and logistics solutions to fulfil orders and meet customer expectations. This confluence of factors underscores the critical role of freight shipping in facilitating global commerce and economic growth.
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The market is propelled by various factors, including the increasing demand for affordable food items and manufactured goods worldwide. Trade liberalization and free trade agreements further facilitate inter-country trade, driving the need for efficient waterborne freight transportation. Digital freight forwarding services have emerged as a trend, streamlining logistics operations. However, challenges such as environmental pollution and pricing analysis complexities persist. Despite drawbacks, the market continues to thrive due to its pivotal role in global economic growth, ensuring the efficient transportation of raw materials and commodities across different ship types and cargo types. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing global trade volume is notably driving market growth, with the advantages of cargo shipping being pivotal in facilitating economic exchanges across borders. Economic growth and international trade agreements positively influence the volume of goods being transported via cargo shipping. As global trade volume rises, there's an increased need to transport goods across borders, leading to a surge in demand for cargo shipping services. These services, including container shipping, bulk shipping, and tanker shipping, play a crucial role in connecting various nodes of the supply chain. However, challenges like environmental pollution and drawbacks of cargo shipping need to be addressed. Nonetheless, freight shipping remains indispensable, connecting emerging markets with established trade routes and promoting economic integration. However, it's essential to acknowledge the drawback of cargo shipping, such as environmental concerns and reliance on port, cargo ships, and cranes.
Additionally, different cargo types and ship types require specialized handling, and the advent of digital freight forwarding services brings both opportunities and challenges to the industry. Moreover, with higher demand for shipping services, cargo shipping companies are likely to operate their fleets at higher utilization rates. This can lead to increased efficiency and revenue generation for shipping companies. As economies expand, there is more consumption, production, and exchange of goods, all of which contribute to increased demand for cargo shipping services. Overall, increasing global trade volume is a significant driver of growth in the market during the forecast period.
The adoption of digitalization and automation in the shipping industry is an emerging trend shaping market growth. This includes the use of IoT devices for load tracking, blockchain for supply chain transparency, and AI for predictive maintenance and route optimization. The Internet of Things (IoT) technology is being used to equip ships, containers, and freight with sensors and trackers to monitor their location, condition, and status in real-time. This enables improved visibility and tracking throughout the supply chain, leading to better decision-making and increased efficiency in freight handling. Blockchain technology is being leveraged to create transparent and tamper-proof records of transactions and documentation in the supply chain.
However, automated cranes, guided vehicles, and robotic systems are being used to improve productivity, reduce labor costs, and enhance safety in port operations. Thus, digitalization and automation are transforming the market, enabling greater efficiency, transparency, and agility in operations while driving innovation and reshaping traditional business models, which is expected to have a positive impact on the growth of the market during the forecast period.
High operating costs of cargo shipping are a significant challenge hindering market growth. Cargo shipping involves substantial operating costs, including fuel expenses, vessel maintenance, labor costs, and regulatory compliance. Fluctuations in fuel prices, stringent environmental regulations, and crewing challenges contribute to cost pressures for such companies. Fuel costs constitute a significant portion of operating expenses for freight companies. Fluctuations in oil prices lead to volatility in fuel costs, impacting profitability. Compliance with environmental regulations, such as the International Maritime Organization (IMO) sulfur emissions regulations, may also require the use of more expensive low-sulfur fuels or investments in exhaust gas cleaning systems (scrubbers).
Further, load vessels require regular maintenance and repair to ensure safe and efficient operations. Maintenance activities include hull inspections, engine overhauls, and equipment upgrades. These maintenance costs can be substantial, particularly for older vessels or those operating in harsh environmental conditions. Labor costs associated with crewing, training, and compliance with labor regulations represent a significant portion of operating expenses for freight shipping companies. Crew salaries, benefits, and training expenses contribute to crewing costs. Thus, the high cost associated with freight shipping may hamper the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AP Moller Maersk AS - The company offers cargo shipping solutions for industries including FMCG, Retail, Fashion and Lifestyle, and chemicals.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The dry cargo segment is estimated to witness significant growth during the forecast period. Dry cargo shipping is one of the major segments of the market. Bulk commodities such as coal, iron ore, grain, ores, and minerals constitute a significant portion of dry cargo shipments. These commodities are typically transported in large quantities using specialized bulk carriers. Agri-bulk includes agricultural commodities such as wheat, corn, soybeans, rice, sugar, and other grains.
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The dry cargo segment was the largest and was valued at USD 84.16 billion in 2018. Further, the expansion of global trade drives demand for dry cargo shipping as commodities and goods are transported between countries and regions. Economic growth, industrial production, and consumption patterns influence the demand for raw materials, agricultural products, and manufactured goods, all of which are transported as dry cargo. Thus, dry freight shipping plays a crucial role in facilitating the global trade of essential commodities and materials, supporting economic growth, and meeting the needs of various industries and sectors worldwide, which, in turn, is expected to have a positive impact on the growth of the market during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America, particularly the US, is a major hub for international trade, both as an importer and exporter of goods. The regions trade relationships with Asia, Europe, and other parts of the world drive significant demand. North America has a diverse economy with significant manufacturing and industrial sectors. The transportation of raw materials, components, and finished goods within North America and to other regions drives demand for freight transportation services. North American companies rely on global supply chains to source materials, manufacture goods, and distribute products to markets around the world.
In addition, cargo shipping plays a vital role in connecting North American businesses with suppliers, customers, and partners globally. North America has a sophisticated logistics and distribution network, with transportation companies, warehouses, and distribution centers strategically located throughout the region. Freight is integrated into these networks to ensure the efficient movement of goods across land and sea. Thus, the market in North America is expected to witness high growth during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is driven by various factors such as low-cost labor and the consumption of commodities, facilitating import/export analysis and offering advantages like low-cost trade solutions. However, drawbacks such as environmental footprints persist, urging the need for technological advancements. With the global supply chain expansion and liberalizing trade policies, freight shipping witnesses warehouse developments and supply chain enhancements. Urbanization and changes in lifestyle contribute to increased consumer spending, boosting industrialization and the growth of online e-commerce portals. Technological innovations like Transmetrics enable optimal freight routing and enhanced vessel deployment, ensuring high efficiency in transporting intermediate and manufactured products, including food & beverages, oil, gas & ores, and electrical & electronics across road, rail, air, and intermodal transport routes.
Additionally, the industry is essential for global trade, facilitating the movement of goods via cargo ships to various destinations worldwide. Commodity consumption drives demand, with freight offering advantages such as cost-effective transportation. However, challenges like environmental impact and exhaust gas emissions pose drawbacks, leading to stricter emission regulations. Efficient supply and demand chains, coupled with data collection on cargo movements and positioning, optimize operations. Seaports serve as crucial hubs, managing freight container volumes and trade flows. Various transport modes, including air transport, rail wagons, and inland barges, complement container cargo segments, ensuring efficient logistics and contributing to global trade facilitation.
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Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.05% |
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Market Growth 2024-2028 |
USD 58.83 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.02 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AP Moller Maersk AS, C H Robinson Worldwide Inc., CEVA Logistics S A, CMA CGM SA Group, COSCO SHIPPING Holdings Co. Ltd., DB Schenker, Deutsche Post AG, Evergreen Group, Freight Forwarders Inc., Hapag Lloyd AG, MSC Mediterranean Shipping Co. SA, Ocean Network Express Pte. Ltd., Pacific International Lines Pte. Ltd., PANALPINA CARGO, PSA International Pte Ltd., Yang Ming Marine Transport Corp., and Hamburg SUD Co. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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