Logistics Trends... On to 2019!

Posted by Port City Logistics on Jan 21, 2019 11:26:00 AM

Like your industry, the logistics world saw some big changes in 2018, with more on the horizon for 2019. By way of review, here are a few of the things we're keeping an eye on:

The IMO Sulphur cap is coming in 2020. it's part of a concerted effort by 100 countries to halve greenhouse gas emissions by 2050 compared to 2008 levels. To cover the cost of adapting to new fuels or "scrubbing" the exhaust of current Sulphur-heavy fuels, it means a surcharge for shippers.

Led by a Dutch company, some shipping lines are investigating bio-fuels as an alternative to polluting Marine fuel oils.

Oceangoing vessels are still the champs when it comes to low CO2 emissions per ton of freight moved. To transport one ton of cargo one kilometer, a ship emits only 3 grams of carbon. For comparison, rail transport churns out 18 grams, trucks 47 grams and air freight blasts out 560 grams.

2018 also saw the opening of new shipping routes. The very first intermodal rail shipments arrived in Vienna from Chengdu, China taking just two weeks to do it.download-1

The onset of trade wars means a slight drop in growth for worldwide merchandise trade. Growth was limited to 3.8% in 2018 and looks likely to pull back to 3.7% in 2019.

North America saw the healthiest export growth in 2018, Asia came in with the strongest import growth. Mineral fuels (oil) were on the United States’ top ten export list along with electrical and other machinery, electronics, and air and spacecraft and vehicles.

While geopolitics still add considerable instability to the picture, global shipping and logistics remains a growth industry. A few things that remain the same:

  • China, the Republic of Korea and Japan lead the world in shipbuilding, delivering 90.5% of new ships to carriers worldwide
  • Greece, Japan, China and Germany continue to own 44% of the world's fleet of over 90,000 vessels.
  • India, Bangladesh and Pakistan are global leaders in breaking down and reclaiming steel from decommissioned freighters.

Keeping on top of global trends is how we keep your logistics solutions on target. Contact us for a free quote or to address any questions you have about moving your goods from A to B. Get your tailored quote now for your 2019 planning!

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Topics: Single Source Logistics, The Costs of Shipping