Shipping companies abandon quest for bigger vessels

There is a “new normal” for international maritime transport, according to the Review of Maritime Transport 2019, which is published by the United Nations Conference on Trade and Development (Unctad). According to the report released on October 30, the “new normal” on the demand side is characterised by a moderation in global economic and trade growth, the expanding regionalisation of supply chains and trade patterns, and continued rebalancing of the Chinese economy. Technology and services are also playing a larger role in value chains and logistics. Climatically, operators have to adapt to intensified and more frequent natural disasters and climaterelated disruptions, and an accelerated environmental sustainability agenda with an increased awareness of the impact of global warming in particular. “Such developments call for improved planning, adequate response measures, and flexible and forward-looking transport policies that anticipate change,” state the authors of the report. “New normal” trends on the supply side include the seeming abandonment of the “quest” for everbigger vessels by shipping companies. Instead, they are moving into landside operations and inland transport. “Ports and shipping interests appear to be focusing more attention on expanding activities to inland logistics and tapping potential underlying sources of revenue. “By expanding activities beyond the port gate into the wider supply chain, carriers and ports alike aim to diversify sources of revenue and increase their proximity to shippers and their cargo. “Efforts by carriers to emerge as freight integrators and recent moves by some major global container lines to acquire regional carriers (eg, Maersk’s acquisition of Hamburg Süd or CMA CGM’s purchase of the logistics company Containerships) could be indicative of industry efforts to adapt to changing conditions,” the report said. On the positive side, “given the regionalisation of trade flows and the trend towards restructuring supply chains, the “new normal" – despite the potential challenges – could generate opportunities, especially for developing countries striving to integrate more effectively into global trading networks."