Global law firm Reed Smith on Friday (25 January) concluded a survey during the first half of 2018 where shipping industry participants were asked: What is the greatest challenge facing the shipping industry in the next five years?
Respondents identified flattened demand growth as the greatest challenge with 18.3% of the vote, followed closely behind by industry consolidation forcing freight rates down with 16.7%, while meeting fuel emissions regulations received 15% of the vote.
The report states that “with recent reports indicating the Chinese economy is slowing down, this is echoed by other industries across the globe. As demand is levelling out, there is a risk of excess capacity in the market. This will affect freight rates and potentially drive out smaller shipping companies.”
40% of respondents equally believed analytics of big data, as well as technology to address environmental issues and emissions, to be the most significant technological drivers of change when asked: Which technology will be the most significant driver of change over the next five years?
“The next five years are likely to be a challenge for the industry, with significant expenditure needed to ensure compliance with new regulations while maintaining competitiveness,” said Andrew Taylor, co-head of Reed Smith’s global Transportation Industry Group.
“The potential for vessel performance to be tracked and measured in real time using big data will likely see greater investment in technology and drive efficiencies.”
The findings have been published on www.reedsmith.com in a report titled ‘Is the shipping industry embracing the digital age?’ The survey can be downloaded here.
Published: 28 January, 2019
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