We have seen the global shipping industry enduring hardship since 2014. The industries latest forecasts show the storm could last for years. As Mr. Bruce Einhorn from Bloomberg Businessweek indicated earlier this year, The Shipping Industry is Suffering from China’s Trade Slowdown. China’s export fell 1.8%, and its import fell 13.2% in 2015, shipbuilders, container lines, and port operators are suffering from the global loss in appetite for Chinese goods. To make things worse, the oil industry is in its deepest downturn since the 1990s.
After China had devaluated its future growth, the shipping industry became more uncertain because of the lack of support from this powerhouse.
However, as the world economy globalizes, shipping is going to increase in importance. The US unemployment rates are low, and the GDP is high. In March this year, European central bank unveiled a bold program to boost the economy, and Japan announced negative interest rates earlier this year in a bid to boost the economy. Europe and Japan continuously seek to boost their economies to bring on the sustainable recovery that everyone desperately needs. This may reduce the reliance on China’s unpredictable market forces.
As we look into the future, we believe there are three areas that will evolve in the shipping industry.
- More connectivity.
Shipping industry seamlessly connects the countries and their consumers with goods from around the world. In the next ten years, the development of information technology advancements will revolutionize shipping, creating a more connected, seamless and efficient industry. In the digital age, everyone wants to be connected, and the shipping industry is no different. According to a recent report from NSR, there will be nearly 1 million in-service satellite units by 2023.
- Energy saving
The shipping industry is the backbone of global trade, and it is also among the top emitter of Carbon Dioxide. It is the time to reduce the environmental impact caused by the shipping industry that pollute the air and seas.
There have been predictions that the use of a wide range of biofuel, oil, wind, and hydrogen power will increase in the next ten years. In addition, some other innovations such as ensuring containers are full are aggressively being implemented.
In the next ten years, we will expect shipping carrier designs to include on-board electricity generation. As a matter of fact, the development of innovative green ships has been the focus of China’s ship building industry.
The shipping industry must continue to enable global trade and prosperity while contributing to a more sustainable future globally.
- Career in shipping
The shipping industry offers some of the most diverse and exciting career opportunities. The shipping industry has been highly unprofitable over the past five years as earnings have been exceptionally volatile. Having said that, the shipping industry cannot afford to accept that fate. Companies need to find ways to help employees embrace change and be prepared to meet the ever-evolving needs of the marketplace.
We expect to see shipping as a highly recognized career sector Both domestically and internationally.