The shipping industry is entering a hyper-phase of problem solving, technological innovation and product differentiation – but which technologies will prove game-changing is still an open question.
That was the consensus of a group of industry experts who examined container shipping’s new world order during a recent webinar hosted by the Journal of Commerce’s Mark Szakonyi and Bill Mongelluzzo.
“In short, the industry is at a turning point, moving away from the bricks-andmortar issues that have consumed it over the past 20 years and moving toward a period when the race to use technology to reduce costs, open new revenue opportunities, and become as efficient as possible will only intensify,” said Szakonyi.
All agreed that Donald Trump’s administration and its focus on protectionism lingered on the outskirts of conversations in industry as a major concern. “Trade wars are not good for anyone,” said Szakonyi, adding that concern over the tariff advances being made by Trump’s administration was increasing. I
t’s a sentiment shared by many across the industry. BIMCO’s chief shipping analyst Peter Sand commented: “Free trade provides prosperity and peace. It’s a fundamental principle to cherish and safeguard. All traderestrictive measures are in principle bad for shipping. Open economies are all better off from trading, as they make use of their resources in the most optimal way. The result of a trade war is more expensive goods of lower quality and little variety. This goes for all products and commodities.”
He said overall more trade-restrictive measures were being introduced. Some more high-profile than others.
“This is a worrying trend that limits demand for shipping globally. Even worse for shipping could be shortsighted political positions that may have lasting consequences for everyone involved in global industries like shipping if a largescale trade war emerges,” he said.
Tariffs may be great to use as negotiation strategies, but trade wars will be harmful to container shipping across the board.
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Trade wars will be harmful to container shipping across the board. – Mark Szakonyi
