This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
Not too long ago, the container shipping industry was facing huge challenges, including oversupply, consolidation, and alliance rearrangements, that shook the industry from within. But 2019 was largely characterized by challenges and disruptions that came from major external forces, and we anticipate that this will continue through 2020.
The ongoing trade war between China and the United States, for instance, saw many production lines, supply chains, and business strategies being adjusted, keeping everyone constantly on their toes and making sure contingency plans are flexible enough during times of uncertainty. Carriers will have to dynamically adjust deployments in various trade corridors to match capacity supply with the changing demand.
The disruptive implications from the IMO 2020 regulation on the industry also sent everyone scrambling to adjust their fleet and operations to ensure compliance by the January deadline. The ability for .
Against this backdrop, it’s no surprise that carriers will continue with their relentless efforts to reach higher levels of efficiency in all aspects of their operations to raise competitiveness. To that end, we have already seen significant momentum in the exploration and use of the latest technologies, such as artificial intelligence and blockchain, as well as in finding ways to provide end-to-end services to customers. We believe developments in these areas will inevitably pick up pace in 2020.
Discussions revolving around these areas will likely have a prominent place on many board agendas during the year, and OOCL is well positioned to embrace these challenges head on.