Trends in Shipping Industry - Reliant logistics

Trends in the shipping industry

The major factor that protected the shipping industry against the destructive trends of 2016 was a dramatic fall in the price of oil and its products in that year. But experts believe that in 2018, as the second consecutive year, we will see a steady increase in the price of oil and its derivatives. An increase in oil prices in 2018 had increased the price of the bunker for ships. In addition to that by 2020, more ships are expected to invest in installing of exhaust gas cleaning systems or switch to a low- sulphur compliant bunker. This issue is particularly important in deliverable ships in this year and beyond. This is sure to increase the ships’ capital or operational cost. The positive effects were expected to continue in 2018, pointing to lifting the sanctions of Iran and its positive effects on the transportation of oil and its products. Another issue that needs to be addressed in this context is farmers and rural people’s consumerism, and urbanization, which affects demand for energy. Studies reveal that consumer demand is rising in most developing countries. Therefore, this is expected to have a direct impact on the transportation of crude oil and its derivatives. Cost of adapting the shipping industry to meet the requirements for reducing the sulphur content of marine fuels by 2020 will be about $60 billion. Ports are vital links in the shipping chain. In this regard, the improvement of infrastructure and productivity of them is very important, and today the port the industry faces many challenges that are reflected in the shipping community. As such hundreds of huge container ships have entered the global fleet in recent years so that many ports in the world could not have afforded to give service to them. According to Ports & Maritime Organization’s directorate of Strategic Studies and Investigations Centre, the Challenges of Ports in 2018: In 2018, ports and port operators will face the challenge of the operational complexity of very large ships, which require centralized management, limited space activities, continuous pressure on enhancing safety and security in and around the port, and accepting green technology (for example, facilities of converting ships’ sludge), and so on; in the supply chain, these issues should be taken into consideration in the scope of ports.

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