China"s Container Ports Are Investing in Shipping"s Future
Over the next five years, the uncertainty generated by the pace of United States' economic recovery, and the recent European credit crisis, will continue to have an impact and influence; on international economies. These events will take place, against the backdrop of China's own policy of reducing the GDP reliance on international trade, as well as a continuing rise in wages in coastal areas; that will drive much of the manufacturing inland. Nowhere though, will this pressure be felt more than at Chinese ports. These vital shipping ports, represent the primary gateway to the rest of the world, for the anticipated increased wave of manufacturing trade; following the opening of the Panama Canal in 2014.
The shift in global manufacturing and trade to the Pacific region, has already begun to build a thriving, intra-Asia trade. Therefore, ports across the region have had to respond by expanding their infrastructure, to ensure they can handle the increase of shipping container volumes; particularly from giants like China. This approach is the only way to ensure, that ports in the area can cope with the increasing size of container vessels, using the region's ports. In China, as in other ports with multiple operators, more of them will be looking to find ways to collaborate; as well as compete. This will become the new reality, as larger vessels will increasingly carry containers from multiple liners, each possibly carrying a separate contract; with a different terminal operator. The operators must find a way to collaborate on the removal of the containers at a single berth, or risk being shut out of the increase in shipping volumes.
Having doubled in size in the last 10 years, shipping container vessels are set to grow again, by up to one third in the next year alone, creating an incredible container investing opportunity; for savvy international investors. However, the only way China's ports will be able to handle the larger container ships, is by making their own investments; and expand their berthing capacity, drafts, cranes and rail and truck access. While ports are working out how to cope with this expansion, terminal operators are under pressure from customers who have seen their margins continue to drop; as additional capacity comes more prevalent in an uncertain macro-economic environment. With that being said, some shipping lines are re-assessing port calls, and looking to renegotiate contracts with terminal operators; in an effort to cut their own long-term operating costs.
The shift in global manufacturing and trade to the Pacific region, has already begun to build a thriving, intra-Asia trade. Therefore, ports across the region have had to respond by expanding their infrastructure, to ensure they can handle the increase of shipping container volumes; particularly from giants like China. This approach is the only way to ensure, that ports in the area can cope with the increasing size of container vessels, using the region's ports. In China, as in other ports with multiple operators, more of them will be looking to find ways to collaborate; as well as compete. This will become the new reality, as larger vessels will increasingly carry containers from multiple liners, each possibly carrying a separate contract; with a different terminal operator. The operators must find a way to collaborate on the removal of the containers at a single berth, or risk being shut out of the increase in shipping volumes.
Having doubled in size in the last 10 years, shipping container vessels are set to grow again, by up to one third in the next year alone, creating an incredible container investing opportunity; for savvy international investors. However, the only way China's ports will be able to handle the larger container ships, is by making their own investments; and expand their berthing capacity, drafts, cranes and rail and truck access. While ports are working out how to cope with this expansion, terminal operators are under pressure from customers who have seen their margins continue to drop; as additional capacity comes more prevalent in an uncertain macro-economic environment. With that being said, some shipping lines are re-assessing port calls, and looking to renegotiate contracts with terminal operators; in an effort to cut their own long-term operating costs.
