Global Shipping Takes Action - February 2016

Global Shipping Takes Action February 2016 Global shipping is on the decline despite the recent economic recovery and many in the industry are struggling to find an explanation. In recent years the demand for commodities has fallen sharply leaving those that are deeply involved in the global shipping market wondering, what now? A major factor in the slump is said to be the low crude oil prices and the decline of trade.

Is this the main cause or is there something more? To help combat the slump, many companies are now working to dump assets that are not essential to function and are working to scale back fleets to those ships that are vital to continued operation. Many companies have even started to merge and band together in an effort to avoid going under in the coming months.

One factor that is undeniable is of course that fact that many companies are being forced to dramatically reduce their own fees in order to compete with other companies therefore cutting their own profits and contributing to the downturn. Though rates have been cut across the board, only time will tell if the shipping industry is set to recover or continue to decline.

As of yet, there are no real indicators that the market is going to start to recover or fall even further. Though only time will tell, it is certainly interesting to watch how companies respond to the downturn in the market in an effort to keep their heads above water.