SIMIC

THE container shipping market is expected to be hit hard by overcapacity from 2024 onwards, reports Hellenic Shipping News Worldwide.

In its latest weekly report, shipbroker Intermodal said that its recent participation in the Busan International Port Conference marked a significant step in keeping abreast of the evolving dynamics of the global shipping and port industries.



The Busan conference, it said, served as a critical forum for industry leaders to exchange insights on current developments and future trends.



Speaking to delegates at the Busan conference, Intermodal analyst Chara Georgousi said: "In the coming years, a notable imbalance between capacity growth and demand poses a significant challenge for the container shipping sector.



With an expected excess in capacity over demand, stemming from a combination of larger year-on-year growth and weak demand since 2019, the industry faces potential overcapacity challenges," Ms Georgousi said.



The conference also spotlighted the emerging focus on the Indian Ocean Rim as a new core growth region, presenting distinct challenges, particularly for South Korea.



"As this area gains prominence in global trade, it calls for a strategic reevaluation by companies operating in or through this region," she said.



"For the port sector, key topics discussed revolved around slow growth, geopolitical tensions, evolving trade patterns, energy transition, digitalisation and automation. Despite flat global volume growth and a subdued growth outlook, ports are increasingly integrating themselves into the broader supply chain.



"Port authorities are taking on more significant roles, including mergers and developing inland ports, to create synergies and manage competition in this low-growth environment. Additionally, the conference highlighted the dual role of ports as both significant sources of emissions and providers of solutions in the face of emissions reduction and energy transition.



"Strategies like alternative fuel provision and electrification of handling equipment are crucial. Notable initiatives include Tianjin Port's development of the world's first zero-carbon terminal and the Port of Antwerp-Bruges's significant wind power generation," she said.