The prospects of container industry in the next 5 years

• Main Author: Tan, Xin Mei
• Other Authors: Teh Kong Leong
• Format: Final Year Project
• Language: English
• Published: 2016
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/69267
• Institution: Nanyang Technological University

The container shipping industry is currently facing low freight rates and overcapacity issues. However, there is still a continuous delivery of Ultra Large Containerships into the container industry. This paper seeks to examine the prospects of the container industry in terms on the impacts of the growth of the developing countries in the next five years. To assess the impacts on the growth of developing countries on the global container industry, a mixture of qualitative and quantitative approach is used to analyse the growth and the impacts of developing countries on the container industry. Since prospects is closely related to freight rates, study on the fundamental of demand and supply is done. The demand in the container industry can be understand using TEU-miles, while the impact of cascading effect due to the continuous delivery of Ultra Large Containerships is considered for the supply sector. With the understanding of the current market situation, the paper examines the factors contributing to the growth of the developing countries and evaluate the growth of these countries. Some contributing factors include lower costs and better infrastructures in the developing countries. With the rising growth of the developing countries over the years, we can expect these countries to play a more significant influence in the container industry in the next five years.