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

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.


Industry Threats & Opportunities

  • Chinese demand for metals and minerals has significantly bolstered demand and volumes
  • Global shipping capacity has increased over the past five years, despite low demand
  • The industry is expected to benefit from increased merchandise exports over the next five years

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    Industry Analysis & Industry Trends

    The Water Freight Transport industry represents a key link between Australian companies and the world economy. However, the industry has faced 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 joined existing fleets, leading to freight rates falling to record lows. Economic growth in China and its demand for metals and minerals significantly bolstered volumes during the period, supporting industry revenue despite the falling rates. However, reduced growth in China resulted in industry revenue falling over the two years through 2015-16. Industry revenue is expected to recover in 2016-17, with revenue growing by 4.9% to total $2.7 billion...

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    Industry Report - Industry Locations Chapter

    Two major factors in determining the concentration of trade and port locations spread throughout the country are population concentration and commodities mining. The higher proportion of establishments in New South Wales and Victoria reflect the higher volumes of trade through the ports of Sydney and Melbourne. These two ports handle the majority of Australia's container shipping trade. Western Australia and Queensland have extensive mining and mineral export operations that give rise to a higher proportion of industry establishments than the size of their state economies alone would suggest.

    The largest exporting state during this period is expected to be Western Australia, while the largest importing states will be New South Wales by value and Queensland by weight. The..

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    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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    Industry Products

    What is the Water Freight Transport Industry?

    The industry operates 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
    Containership services
    General cargo services
    Industry Activities
    Bulk cargo transport
    Containerised freight transport
    General cargo transport

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Global shipping markets
  • Freight demand
  • Profitability
  • Coastal trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Global shipping markets
  • 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

  • Products & Markets
    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
  • Containership 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
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Water Freight Transport

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

  • Industry Globalization
    Major Companies
    ANL Container Line Pty LtdASP Pacific Holdings Pty LtdHapag-Lloyd (Australia) Pty Ltd
  • Table: ANL Container Line Pty Ltd - financial performance
  • Table: ASP Pacific Holdings Pty Ltd - financial performance
  • Table: Hapag-Lloyd (Australia) Pty Ltd - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Water Freight Transport Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Tramp Shippping
  • Ships that do not follow a specific route or transport a specific commodity.
  • Triangular Trade
  • Triangular trade occurs when a ship moves between multiple Australian ports as part of an international route, transporting cargo between them.
  • Twenty-Foot Equivalent Unit
  • A unit of measurement used by container transporters, which is based on the volume of a 20-foot-long shipping container.
  • Why buy this report?

    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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