Cargo Shipping Market size was valued at USD 11.26 billion in 2021, growing at a CAGR of 4.6% during the forecast period 2022–28. Cargo means the items or supplies transported by a ship, aeroplane, or vehicle. Transporting commodities from a port to a destination via ships, cargo ships, and other vehicles is known as cargo shipping. The main benefit of cargo shipping is that it makes it possible to transport heavy items that cannot be transported by land or air. Cargo shipping does have one problem, though. Compared to other forms of transportation, these are slow. Cranes and other similar equipment are typically included on cargo ships in order to load and unload the cargo. The least expensive form of transportation is shipping, per tonne. Due to its affordable and effective long-distance transportation with reduced environmental contamination, it is favoured. The impact of COVID-19 on the world has been extraordinary and astounding, with the pandemic causing a negative demand shock in every region. The demand for waterborne freight transportation is on the rise due to the increased import and export of manufactured goods, bulk transit of raw materials, and the availability of low-cost food. The trade of manufactured and intermediate goods has been boosted by the expansion of the global supply chain, the liberalisation of trade rules, and technological advancements in waterborne shipping, which have greatly decreased the costs of coordination and transportation. Thus, the expansion of the cargo shipping business is due to growing economic liberalisation, particularly in developing economies, and the improved efficiency of shipping as a medium of transportation. The pandemic also had a big effect on oil and gas trade since it caused the global oil demand to decline due to the disruption of a substantial portion of the world’s economy, travel and transportation bans, and decreases in industrial production and refinery output. The majority of analysts are, nevertheless, upbeat about the rebound in dry bulk shipping volumes in 2021. Rapid urbanisation, industrialisation, and economic expansion are the main causes of this issue. A significant growth engine for the global shipping sector will be the steady advancement and greater investment in transportation and other infrastructure, both of which require significant amounts of steel and other industrial materials and goods. As a result of these capacity restrictions, major carriers have avoided charging low costs for cargo/freight shipping services. The major container ports have less activity as a result of the decreased demand for these shipping services.
Recent Market Developments:
In September 2020, the CMA CGM Group sent one of its biggest container ships, the CMA CGM BRAZIL, to the U.S. East Coast to work on the once-weekly Columbus JAX route.
In May 2021 – To maintain service continuity and streamline impacted operations, MSC is collaborating with blockchain platform WAVE to expand general use of its (charges connected to loading of products) in India.