2017 was yet another year in which many in the maritime industry realized the need to run as fast as possible just to stay in place. Cost pressures continued to plague the industry in 2017 in spite of the fact that it appeared to be a year of relative recovery with growth in volumes and freight rates in some of the major global trades. However, overcapacity still looms large with the renewal of mega-ship ordering and its potentially negative impact on the market.
Global market changes have occurred. Included in these changes is the so-called “Amazon effect” — the evolution and disruption of the retail market resulting from increased e-commerce. This effect has caused a noticeable impact on procurement and distribution. It has compelled carriers to rethink their traditional ways and find creative solutions to new challenges.
In the US, the ongoing cascading of larger ships to US East Coast ports at times created bottlenecks and berth congestion. Longer-staying vessels took their toll on carriers and customers. Inadequate infrastructure created delays because of surges of cargo on already taxed systems. In the trans-Pacific trade, there is a need to address backhaul costs, presenting a considerable burden for carriers.
The beleaguered ocean liner industry is also facing difficulties attracting new talent to join its ranks. We must revitalize the industry. Introducing new ideas and promoting a spirit of innovation and introduction of new technologies is needed in order to convince the best and most qualified employees to join the industry and help to drive it forward.