The Global Cargo Shipping Market is estimated to reach $14.2 billion metric tons by 2025, growing at a CAGR of 3.1% from 2020 to 2025. The transportation of goods and materials from one port to another through a ship or other vessel by sea, oceanic or any water body route is called cargo shipping. Owing to the increase in seaborne trade, growing imports and exports of container cargo trade and growth in end user industries are driving the growth of the market. The ever increasing demand of handling of delicate materials and transporting at a cheap cost along with rising import and exports across the globe are driving the growth of the market.
By Type- Segment Analysis
By Type Cargo Shipping Market is segmented as Linear Ships and Tramp Ships. The linear Cargo Ships are dominating the market owing to their wide use by the bigger companies for transportation of goods and materials. As the linear ships travels on a fixed prescheduled route and have charged tariffs, they are used by the bigger end use industries. The linear shipping network is a regular shipping network at low cost and greater efficiency as compared to other type of cargo shipping. According to the World Shipping Council, Single linear cargo ships can handle 7600 cars in a single voyage. Furthermore, 10000 containers of goods and materials were transported by a single linear cargo ships in a single voyage. Owing to these the linear cargo ships are preferred and chosen for shipping purpose. These factors are driving the growth of linear cargo shipping thereby driving the market growth.
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By Application - Segment Analysis
By application the market is segmented into Food and Beverages, Electronics, Manufacturing, Oil and Fuels and others. The Food and Beverages sector is witnessing a significant growth in cargo shipping. The growth in demand for packaged frozen meats to fruits and vegetables along with finished beers to fine whiskeys of good grade and brands has increased the demand for cargo ship transportation. The major trade agreements formed between the developing and developed countries owing to the upsurge in demand of high quality food items is also one of the driving factor for the market growth. The requirement of cargo shipping for transportation of frozen food items, nonperishable and perishable food items, heated food items and others has also propelled the growth of the market.
Geography - Segment Analysis
Global Cargo shipping Market is dominated by APAC region by a market share 40.4% in 2019. The rising technological advancements, rising manufacturing activities along with rising trends for seaborne transportation activities have driven the market growth in the APAC region. The import and exports of food materials through sea routes have also driven the market growth in this region. According to CEIC, reportedly Chinas Container Port Throughput had an increase from 216,684,000 TEU to 225,828,900 TEU in December 2018 as compared to December 2017. These factors are fueling the growth of Cargo Shipping Market.
Drivers – Cargo Shipping Market
Rise in the growth seaborne business:
The rise in business through seaborne routes is one of the major factor driving the growth of the market. Owing to the efficient delivery of delicate manufacturing materials and other materials along with lower cost is driving the market growth. The seaborne routes are chosen for import and export purposes by many countries at a global level as the cargo ships can carry huge materials through just at one single voyage saving the cost of transportation. Furthermore, the small companies are extensively using cargo shipping for trade purposes as they generally opt for tramp shipping as they do not have enough fleet to run linear voyages and also to save the transportation costs that require several transportations. These factors are driving the growth of the market.
Rise in globalization and import/exports opportunities:
The rise in globalization has resulted in the growth of import and exports of goods and materials between different countries globally. This growth in globalization has resulted in trade businesses between different countries and import and exports thereby increasing the cargo shipping opportunities. The cargo shipping containers are designed in such a way that they can withstand toughest weather conditions that makes them the best transportation means for long distances through seas and oceanic routes. The vessels are built strong and heavy along with large space optimization and increase the container capacity which makes them best for travelling long distances. These are driving the growth of the market.
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Challenges – Cargo Shipping Market
Environmental and cost related challenges:
Cargo Shipping undergoes some of the environmental challenges like oil pollution, water pollution, acoustic and air pollution. The air pollution also includes greenhouse gas emissions. The new bigger container ships have high cost. Furthermore, the design of mega-cargo ships with strong vessels requires high price materials. These factors are hindering the growth of the market.
Market Landscape
Service Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Cargo Shipping Market are given in this report. Cargo shipping Market is dominated by major companies such as Hyundai Merchant Marine, Pacific International Line, Yang Ming Marine Transport, Evergreen Line, Ocean Network Express, Hapag Lloyd, CMA-CGM, China Ocean Shipping Company, Mediterranean Shipping Company, APM MAERSK among others.
Acquisitions/Technology Launches
April 23, 2020- Blujay Solutions and Uber Freight announced partnership. The partnership helped businesses to build global supply chain with freight technology.
June 25, 2019- Maersk expanded its product portfolio by launching a new online product namely Maersk Spot. The product provided full visibility to the cargo in a simple and reliable way.
Key Takeaways
Rise in adoption of cargo shipping due to cost efficient and effective transportation trade facilities have driven the growth of the market.
Food and Beverages industry is witnessing a significant growth in the market owing to the large imports and exports of packaged food items globally.
APAC is expected to dominate the global Cargo shipping Market in the forecast period 2020-2025 owing to growth in technological advancements, surge in trade and business along with adoption of cargo shipping for transportation applications in the countries across the globe.
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