The transportation industry across the globe has seen a lot through the last year. The shipping authorities of different countries have come up with new and stricter guidelines to ease the shipping trends. With the frequently changing rules and trends related to transport and the effects of the changing trade relation between the countries have made it more difficult for the freight companies to cope with.
But the good side of it is that transportation compared to earlier times not restricted to the traditional or the conventional systems. With many companies taking a major role in the industry of freight companies must be clear about the shipping trends to figure out their shipping strategies.
The major areas to consider for 2017 are:
- Trade relations and treaties between the United States and China:
The United States and the China are the leading countries and the backbone of the trade industry around the globe and their trade relations have a very prominent impact on the shipping industry around the globe. But with the new elections and the new government of the United States and also the new Chinese trade policy has marks that may pilot to trade war between countries.
But the positive side of it can be that with the increase in the Global GDP and the fall in the European trade system China will no longer have other options except going for trade relations with the United States and hence the shipping industry may benefit out of it.
- Implementation of the new Electronic Logging Devices as a system:
With the increase and advancement of technology in all fields the shipping industry is also going and growing advanced and with the implementation of the new advanced Electronic Logging Devices, the freight companies have also taken a positive turn.
- Demand supply polarity:
One of the major issues that the freight companies will face in the new is the fact that as an effect of the Hanjin Collapse the supply has decreased and the demands have increased ephemerally. This will hugely effect the price trends that may although settle in with time but the difficulties may have a long-term effect.
There has been an Exponential growth in the number of confederations
- The New Year is anticipated to see an exponential number of confederations that might change the basics of the fine running of the shipping industry. Such confederations will look for a better adjustment of their introduction in the market.
- Therefore exact anticipation can be difficult but it is sure to change the way the industry runs currently.
- According to the various surveys conducted the current concern of the market is regarding the challenges that will be faced both organizational as well as logistical by the companies which can ultimately lead to the disruption of many freight companies.
Uncertain price hike of the freight industry
All of the above trends will contribute to an uncertain price hike of shipping and hence will increase the freight rates. Therefore, as a major fact, companies must be prepared for high rates for shipping in 2017. Along with that, the surcharge and the commodity prices in the global market are also responsible for highlighting major shipping trends in 2017.
Although these are the business trends of the shipping industry in 2017 yet some are anticipated a trend and hence the companies can have a positive hope for the better turn off their anticipation. However to cope with the competitiveness in the market and also to make a profitable business complying with the trends and expecting the worst and set policies accordingly can prove to be good.