Lower growth rate seen in global shipping industry
LOWER growth rates in the short to medium term in the global shipping industry is expected next year, according to an analysis of maritime consultancy company Drewry.
“The world has restocked and normal growth patterns are once again reasserting themselves, but for next year we believe there will be a regression to the mean that will result in lower rates of growth in the short to medium term,” Drewry said in its analysis of the global shipping market came out on the Port Technology news website.
“Rates are expected to rise again next year, but not at anything like the same margin as this year. Many shippers will be reluctant to agree - ond year in a row. Ocean carriers may well have negotiated much improved contracts in 2017 across core trades, but that was relatively easy from such a low base. Next year is a much sterner test for them, particularly with slower demand growth and as much 1.3 million twenty- foot equivalent units (TEU) worth of extra slots hitting the water,” it added.
Drewry noted that, although many political and economic issues, such as Brexit and the possible reversal of the rehabilitation process between Iran and the West, remain unresolved, shipping companies continued to do business.
“Now… while many of these issues have not completely gone away, none appear critical enough to provoke any economic derailment. After the caution of the previous years, that lagging trade - omies have simply [gotten] back
Menawhile, Europe posted the slowest growth rate in September 2017, at 4.4 percent. The fastest-growing regions were North America at 12.6 percent. Latin America (11.1 percent) and China (10.3 percent).
The global index fell in September 2017, but still increased by 10 points since September 2016.
- tions, the trend has been relentlessly positive in 2017, following on from a more muted growth pattern last year,” Drewry said.