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Hollywood California Sea Container Trends

Everything is now advancing and changing fast and it can be hard to follow every trend. If you are in the shipping industry, you will need to know what is going on in order to keep up with the competition. A great thing is that most of them won’t pass unnoticeable. By following the biggest companies you will be updated constantly.

The vessels are getting bigger and technology is advancing. There will always be a demand for transport units. These trends will affect the price of buying a container so it’s important to do your research online for California page to where you can get a conex container and inform yourself to make the right decision. Even if you need only one container, the difference in price can be large if you don’t know where to look.

California Sea Container Trends

Demand in the Shipping Industry

There were some tough situations where changes had to be made in the industry in order to keep the vessels profitable. They invested in making bigger container vessels and tried to focus more on creating alliances and cooperation between carriers so they can survive. That’s why it was hard for a smaller company to be a part of it, because it was too expensive if you didn’t have some kind of deal with them.

Building new vessels is still going on but they need to use the old ones also because of the high demand and they are tight when it comes to tonnage availability. The cargo amounts are increased by 4 to 4.5 % compared to the growth of the containers of 3.9% per year. The supply and demand have become more balanced so we have a positive thing going on. There is a huge difference in idle vessels in 2018 compared to 2015 statistics. In 2015 we were losing 1.36 million TEUs which is a measurement used to state the number of containers. In 2018 this number was down to 190 000 TEUs. Read more here.

Port Utilization

It’s becoming a problem for ports to have access for the biggest vessels that can carry more than 20 000 TEU carriers. It doesn’t only impact the space used but also the overall organization of the port. There are many conflicts rising and people question how they operate the ports. Some of them don’t even allow that these giant ships settle at their location but they are forced into it. The capacity of these ports is a huge problem that they are fixing at the moment of arrival.

The only solution for this problem is to ask for a wider spread of ports so the process can be smoother and this will mean a lot to smaller ships also. Another risk is that logistics flows are controlled by only a few big ports. It doesn’t benefit the market competition, carriers and customers when a single terminal operator is looking to sign up with only 1 or 2 alliances.

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Market Improvement

There’s no doubt that there is a huge potential for container industry growth. Today, China is the leader in the industry but new regions are emerging and starting to make some changes. There is a huge demand in other regions for containerized goods like in Nigeria. When it comes to countries like Nigeria that are expending really fast where is expected to double their population by 2050, you can imagine how big the industry needs to get.

Growth of Containerization

Containerization is another trend that companies are adapting their cargo to, which is a container shipping method. They are using other methods to adapt their cargo, downsize it so it will fit the containers more efficiently. This can’t be implemented for every type of cargo they are transporting but in the majority situations, it can be done.

One of the countries that are pretty involved is Sweden with over 1.5 million TEUs. It’s expected that they will gain an additional 1 million in the near future. Companies are working on a model of transporting the cargo directly to the consumer which will minimize the damage. This can be more efficient and the expenses will be lower than expected. One study predicted that in the next 10 years we can expect that out of all global cargo, 90% will be shipped in containers.

Sustainability and Environment

Sustainability and Environment

Maybe the most important thing that every industry needs to focus on besides the growth is environmental issues and sustainability. Global problems are noticeable and some of the biggest problems are in bad processes of many large companies. It can be really expensive for a company to adapt to changes that need to be made but the consequences can be much bigger.

They will need to look into improving the technology so it can be easier to transport goods with lower impact on the environment. Ships need to be adjusted to the new regulations that are coming which may close a lot of companies but it will be an opportunity for new ones. The cost for carries will be larger but an advantage is that more parties will want to work with the carriers that adapt to the changes.

New Technology

New technology is improving so fast that many can’t follow and they are not able to beat their competition that is investing more. New systems are more efficient and everyone will want to work with the company that made these improvements. Even the blockchain technology will have an impact on the shipping industry. It will allow new innovations to be made.

So, with the growing industry, it is hard to gain customers which will be determined by technology in the end. There’s no doubt that there should be more transparency in the whole logistics chain from producer to consignee. It would be best if the technology is shared so everyone can adapt faster and provide the best service. There should be more time invested because it is and going to be a big part of the world market. Many large retailers are closing their stores and will only ship from their warehouse.

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