It is a well-known fact that the future of global shipping is heavily reliant on the stability of the global economy which is dependent on the political temperature as well. If we were to look back at the world politics and the state of events, from the turn of events with the US elections, President Trump’s ongoing war of words with North Korea’s Kim Jong-un, and many other unsettling situations around the globe, has unsettled the future of global shipping. With the term for continuing with Brexit in 2019 set upon and the BRICS agreements showing progress, other regions of the world are still moving towards finding a balance especially with the world economy.
As we said previously, the future of global shipping and trade is heavily reliant on the world economy, and the political temperature, trade volumes has seen a dip in growth looking at the trade to GDP ratio on a global scale. 2017 showed a trade flow fluctuations which in turn not only affected developed countries but also those that are developing, whilst marginal performances were observed in some regional areas. The makeup of global demand has in part contributed to how the GDP and investment trade links are moderated with the later deteriorating over the years.
However, based on the last couple years’ worth of data, an evaluation of trade volumes expects a compounded growth of 3.2% in the coming years (from ’17 to ’22). Whilst growth is expected, there will be some difficulties in the future of global shipping. 2017 proved to be a trying year, with increasing freight rates and even higher global demand. Furthermore, there have been many changes in the container shipping industry with the likes of acquisitions, mergers and more. Notable mentions go to 2M (Maersk and MSC), the Ocean Alliance (CMA, CGM, OOCL, Cosco and Evergreen), and THE Alliance (Hapag-Lloyd, MOL, K Line, NYK, and Yang Ming).
Keeping that all this in mind, Transco Cargo is committed to providing the best freight forwarding services out of our Melbourne offices, serving Australia customers in sending their commercial and personal shipments overseas.