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Domestic Coastal Container Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies and Forecasts, 2016 To 2024

  1. Published: November, 2017
  2. Format: Electronic (PDF)
  3. Number of pages: 70
  4. Industry: Automotive & Transportation

Domestic coastal container market is expected to grow at a significant pace from 2016 to 2024 owing to the shift from coastal areas to inland shipping. Inland shipping offers shipping of commodities such as mineral oils, dry cargo, chemical products and biofuels. The benefits such as customized solutions, packages and ship trading are expected to grow inland shipping applications and drive the industry growth.

Furthermore, costal shipping is viable, reliable, and cost-efficient option of cargo transport. It provides an environment friendly and economical transport option. The CO2 emissions for costal shipping in grams per ton/km are 14 grams as appose to 23 grams for rail freight. It is also around 38% cheaper than rail and 63% cheaper than road. This advantage is expected to benefit the market over the next eight years.

More companies are starting costal shipping services, for instance Indian companies are indulging in alliance and joint ventures to connect the ports between east and west coasts. Moreover, increasing developments in ports shipping companies and railway sector is increasing the applications of the container in the market, which is increasing its usage to carry goods.

The ease in restrictions on coastal shipping in various countries is expected to boost the demand for domestic coastal container market. India has relaxed cabotage restrictions for port transship for at least half of containers handled and hopes to attract more containerized cargos. This relaxation is anticipated to enable foreign container lines to carry import-export laden and empty containers between the Indian ports.

Factors restraining the industry growth include the loading volume regulations. The container weight and ship stability regulations restrict its use to avoid overweight, which damages the transportation systems.

Asia Pacific is expected to witness exponential growth over the forecast period owing to the increasing demand from countries such as China and India. China has formed several domestic trade port hubs based on the Yangtze River Delta’s Shanghai Port, Suzhou Port, Yingkou Port and Bohai Bay’s Tianjin Port. India is also expected to grow rapidly over the forecast period owing to the reducing government restrictions.

COSCO Container Lines Co. Ltd., Pacific International Lines Pte Ltd, Hamburg Sud Group, Yang Ming Marine Transport Corp, China Shipping Container Lines Co, Ltd., Orient Overseas Container Line Ltd., and Hanjin Shipping Co. Ltd., are the key industry players. Suppliers use product differentiation as well as strategic alliances, mergers and acquisition to gain competitive advantage.

In April 2016, COSCO Container Lines, Evergreen Line, CMA CGM, and Orient Overseas Container Line announced that they have formed a new alliance enabling each of them to offer comprehensive service networks and competitive products covering the Asia-Mediterranean, Asia-Europe, Asia-Middle East, Asia-Red Sea, Asia-North America East Coast, Trans-Pacific, and Trans-Atlantic trades.

In March 2015, Pacific International Lines Pte Ltd. announced acquisition of Mariana Express Lines (MELL) which is container line operator specializing in Asia Pacific region such as Micronesia, Saipan, Guam, Papua New Guinea, Malaysia and Australia. The acquisition was aimed to compliment PIL’s liner business and global network.

In March 2015, Hamburg Sud Group, announced that it has taken over the container liner activities of Compania Chilena de Navegacion Interoceanica S.A.. The company will continue to operate the Compania Chilena de Navegacion Interoceanica container liner business under the established brand name on the trade routes between the West coast of Asia, North America, South America, and Europe respectively.

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