Shipping Industry Drivers for Container Tracking
Always fluctuating, the Container Shipping industry has been particularly unstable and unprofitable since the Recession. International Monetary Fund research shows that global exports only increased by 2.9% from 2008-2015, less than half the growth in the previous 5 years. This has been compounded by the fact that in periods of economic upturn, such as in 2007, Shipping companies embarked on long-term and irreversible capacity expansion strategies. The growth of the world’s merchant fleet is now greatly outweighing export growth. Container carriers often invest in larger assets in a bid to lower production costs, but of course the downsides to this are the periods of overcapacity and low utilisation. At the end of 2011, there were approximately 20 million cargo containers worldwide.
The Shipping economy improved slightly in Europe in 2016 with several mergers and new alliances and a period of high demolition, while demand growth outstripped fleet growth for the first time since 2010. However, in 2017, Brexit is bringing new uncertainties, not just for the UK, but for other European countries which trade with the UK or which may also be considering an EU exit of their own.
Threats & Alliances
These challenges have coincided with a rise in theft, attacks, arms smuggling, illegal migrant flows and trafficking. The new alliance models springing up have greatly increased transhipment, so Containers are being transported to a wide variety of different places with longer waiting periods in each location.
Never has it been more important to be able to track, monitor and recover your Containers and monitor the condition of their Cargo in order to secure your assets, comply with industry Regulations and increase operational efficiency.