Treading water: Industry oversupply and falling shipping rates have constrained growth

The Water Freight Transport industry represents a key link between Australian companies and the world economy. Despite the industry's vital importance to international trade, the industry has faced several challenges over the past five years, including a growing oversupply of vessels. Ships commissioned to be built during the prosperous years prior to the global financial crisis have been completed, joining the existing fleet of ships. Consequently, freight rates have fallen to record lows as overcapacity has plagued the industry. Reduced growth in China resulted in industry revenue falling over the two years through 2015-16. Consequently, industry revenue is expected to only grow at an annualised 1.0% over the five years through 2017-18, to $2.8 billion...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
1.0%
Forecast Growth 18-23
Profit
Employment
4,428
Businesses
300

Industry Threats & Opportunities

  • Oversupply of capacity has reduced freight rates
  • Falling shipping rates have reduced profit margins over the past five years
  • The industry is expected to benefit from increased merchandise exports over the next five years
  • Industry Report - Industry Analysis Chapter

    The volume of goods and materials shipped globally has expanded over the past decade. Shipping companies have sought to capitalise on this increased volume trade, expanding their shipping capacity by constructing new ships. However, growth in the supply of vessels has outstripped the expansion of trade volumes. This has created an oversupply of capacity, which has reduced shipping freight rates over the past five years. Consequently, the Water Freight Transport industry’s revenue has grown slowly over the period. Industry revenue is expected to grow at an annualised 1.0% over the five years through 2017-18, to $2.8 billion. Shi...purchase to read more.

    Additional Insights for the Water Freight Transport Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Water Freight Transport Industry are

  • Market research and understanding
  • Output is sold under contract
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Total mass of exports by sea and Total value of world trade in the Water Freight Transport industry impact industry performance..

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    What's in this report

    What is the Water Freight Transport Industry?

    Industry players operate vessels that transport freight by water. Primary activities include international sea freight transport services between domestic and international ports, coastal sea freight transport services between domestic ports, freight ferry services and harbour freight transport services. Further activities include river freight transport services, ship freight management services (the operation of ships on behalf of owners) and inland water freight transport services.

    Industry Products
  • Bulk carrier services
  • Container ship services
  • General cargo services
  • Industry Activities
  • Bulk cargo transport
  • Containerised freight transport
  • General cargo transport
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total mass of exports by sea
  • Total value of world trade
  • Value of merchandise trade imports
  • World price of crude oil
  • Days lost to industrial disputes

  • Current Performance
  • Oversupply and participation
  • Freight demand
  • Profitability and competition
  • Coastal trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and employment
  • Growing vessel size
  • Freight demand
  • Table: Water Freight Transport Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Water Freight Transport Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grain Growing
  • Black Coal Mining
  • Iron Ore Mining
  • Rail, Air and Sea Freight Forwarding

  • Key Selling Industries
  • Navigation, Towage and Services to Water Transport
  • Port Operators
  • Shipbuilding and Repair Services
  • Stevedoring Services
  • Transport Equipment and Large Vehicle Rental

  • Products & Services
  • Bulk carrier services
  • Container ship services
  • General cargo services
  • Chart: Water Freight Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Mining sector
  • Manufacturing sector
  • Freight forwarders
  • Agriculture sector
  • Chart: Major Market Segmentation for the Water Freight Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Water Freight Transport

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Water Freight Transport Industry

  • Industry Globalization
    ANL Container Line Pty Ltd, Hapag-Lloyd (Australia) Pty Ltd,
  • Table: ANL Container Line Pty Ltd - financial performance
  • Table: Hapag-Lloyd (Australia) Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Water Freight Transport Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Water Freight Transport Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Break Bulk
  • Cargo that must be loaded and unloaded individually because it is not easy to containerise. Break bulk cargo includes motor vehicles, structural steel and agricultural equipment.
  • Conference
  • An unincorporated association of two or more ocean carriers carrying on two or more businesses, each of which includes, or is proposed to include, the provision of liner cargo shipping services.
  • Freeboard
  • The distance from the waterline to the upper deck level measured where water can enter the boat or ship.
  • Triangular Trade
  • Triangular trade occurs when a ship moves between multiple Australian ports as part of an international route, transporting cargo between them.
  • Wharfage
  • A fee charged for the use of a wharf.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Water Freight Transport market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Water Freight Transport:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Water Freight Transport market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Water Freight Transport, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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