A shipping container is a container with suitable strength to cope with the shipment, storage and handling of the contents they transport. Shipping containers eliminate the need to unload and reload cargo at connecting points, rendering the transportation of goods easier and more practical.
The global shipping container market is segmented into container size, product type, end use, and region. As a whole, the global shipping container market size was valued at $7.85 billion last year, and it is forecast to reach $23.96 billion by 2030, representing a growth of 13.2% for the 2022-2030 period.
In this article, we will explain some of the factors driving this growth.
Higher demand for cargo transportation via ships
Cargo can be easily and efficiently transported through water ways. In fact, it is a safer way of transport compared to other modes to transport. Additionally, cargo ships are cheaper than using road and air transits, and they can carry more cargo in a short amount of time. New technological developments and innovations in commercial ships, such as advanced sensors and navigation systems, are creating a higher demand for cargo transportation via ships, leading to the growth of the market and the industry.
Rise in trade-related agreements
A number of trade agreements have been made between nations to transport goods, and many suppliers choose water ways as a more efficient means of transportation, leading to the development of better containers of different shapes and sizes. Free trade agreements have also reduced duties and taxes, and many countries are lifting bans to make trade more flexible. Therefore, free trade agreements boost demand for better containers, buttressing the growth of the shipping containers market.
Fluctuations in transportation and inventory costs
The cost involved in transportation and holding inventory is a crucial factor that has a direct impact on logistics. Arguably, price is the most important factor when it comes to overall logistics services: from the first function until the goods are delivered. The constant fluctuation in transportation and inventory cost has enabled customers to choose different means to transport goods, and this has a direct impact on the growth of the global shipping containers market as more customers opt to transport their goods by sea.
Anticipated trend of automation in marine transportation
Automation has made it possible for many countries to join efforts to create automated vessels to be used in cargo transportation, contributing to the growth of the shipping industry. Rolls Royce and Finferries have created fully autonomous ferries, and YaraBirkeland (a fully autonomous container ship) has been sailing for the last two years under the flag of Norway. Therefore, automation in the shipping industry is an essential factor for growth given the increased safety measures.
New technologies such as artificial intelligence, the Internet of Things, and big data allow for better tracking of potential problems before they become emergencies and improve environmental control, resulting in what is known as remote container management (RCM), making it possible to monitor the current location of containers, the temperature and humidity inside the container, and the power connection status at anytime, anywhere in the world.
The growth of e-commerce
Given that many products are bought and sold online, the growth of e-commerce has increased container shipping activities globally. E-commerce allows for ease of availability of a diverse range of products worldwide, increasing the demand for more precise and prompt container shipping.
Container shipping will continue to be a part of future transportation because it is one of the preferred options for the transportation of goods in large quantities.