Thousands of containers arrive at shipping ports daily from countries worldwide. Liner ships regularly carry and transport these containers on fixed routes, similar to train or bus services. Â You may want to check this site to see what services a premier shipping container business can offer.
​In recent years, container-shipping companies have experienced significant economic hurdles, including exceptionally high market volatility. Several factors have caused these losses, such as the unstable recovery from the global financial crisis and the growing efforts of corporate clients to control costs.
Still, some of the problems may have been self-inflicted. For example, some industries in the past have experienced significant business growth, which led them to think demand will continue to rise in the future. As a result, these container lines have built a capacity that appears to be unnecessary.
However, there are some opportunities underlying the container shipping industry’s challenges. What are some challenges and hidden opportunities in the container shipping industry today? What are some ways to take advantage of opportunities in container shipping? This article lists and discusses hidden opportunities in container shipping. Learn how these container lines can take advantage of these opportunities.
The Opportunity in Container Lines
Container lines can improve return on investment (ROI) by taking advantage of savings and revenue opportunities. Container transport companies have opportunities to improve performance across the enterprise, including operations, commercial, network, and fleet activities. For example, in sales, many container shipping companies fail to charge a premium for services even though clients are able and willing to pay for more.
Many container lines treat bunkers as a necessary cost of doing business. However, these companies may still be able to reduce bunker management costs by implementing strategies such as:
- Optimizing vessel speeds
- Managing inventory
- Developing lean terminal ports
- Automating tasks, such as intermodal dispatch, by using IT (information technology) systems
​In network design, shipping companies may also improve their revenues by integrating innovative tools when designing routes. New and powerful algorithm-based systems can help container lines make better, more efficient network decisions. There are significant problems facing container shipping companies today.  Sometimes, these difficulties are beyond the control of the company. However, shipping companies may take advantage of various savings and revenue possibilities.
Hidden beneath some of the industry’s problems are specific challenges that may broaden container lines’ opportunities. After examining various aspects of the container shipping market, one can note that it faces specific challenges such as rate volatility, competitive pressure, and overcapacity. At times, the industry may not have a promising outlook or opportunities. Still, with adaptive and comprehensive strategies, container lines may address potential risks and improve ROIs.
The Industry’s Challenges
​Here are some challenges the container industry may face today:
- Market saturation: Today’s market conditions may force some container lines to become overcompetitive. The race for market share has squeezed out smaller players and sparked a new round of price wars. Transport companies are abandoning their pricing guidelines regarding spot rates and overall rate increases. They are also refusing to impose contracts with customers.
- Disputes between asset managers and transportation firms result in poor business decisions. Many carriers are embroiled in disputes with the owners of the ships they manage. Carriers want to profit from their transportation business, while owners want to maximize the value of their assets. Many people experience a clash between asset management and transportation attitudes. The trend of overcapacity and business losses may continue in the coming years unless fundamental changes occur.
