Paul Devine, President, OOCL (USA)

https://www.oocl.com
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Paul Devine

After the tidal wave of turbulent changes that took place over the last few years, the container shipping industry seems to be finally heading into more promising waters following the episodes of M&As, a corporate collapse, new alliance groupings, and major corporate reorganization activities.

As the industry continues to evolve and operate under this new playing field, an outlook of cautious optimism for 2018 looms as everyone keeps watch on challenges from oversupply while signs may indicate healthier demand growth in the overall market environment.

Many carriers will also need to observe the rapid changes in the e-commerce, IT, and digitization space to invest in the right technologies that would give them the competitive edge and ability to provide superior services and enhance operational integrity. Such benefits can come in the form of higher operational efficiency leading to cost savings for the carriers, improved schedule reliability of services that would ultimately win customers, and improved security measures to safeguard business operations.

On the regulatory front, the push for more stringent environmental standards and requirements in the maritime community will gain momentum, and the developments here will determine how forward-thinking carriers are going to make the necessary adjustments and investments in their fleets.

We have also seen how domestic trade and environmental policies in major markets such as China can have a sizable impact on the supply chain; the industry’s attention to such developments will be important to determine how product and services may need to be adjusted.