Drastic changes underway in the shipping industry

Rampant pirate attacks.

Empty containers piling up.

Laid up car carriers filling up anchorages.

The worldwide shipping picture is changing each day, and it does not appear to be change for the good.  For those of us who read the news at Lloyd’s List, it seems that a grimmer picture forms every morning in our inboxes.  Just a quick scan at the Lloyd’s List website currently has headlines that read like this:  Experts warn of shortage of lay up space, Piracy to get worse before it gets better, Crew wage hikes are off says shipping employers, and this is just a brief snapshot.

Shipping containers piled-up in port

With so many industrial sectors supporting the transportation of goods by sea, the effects of the global economic crisis will be far reaching.  Entire communities in the  major shipbuilding cities of South Korea, China, and Japan will likely be broadsided with the drastic cancellations of new orders and existing orders.  Bunkering will no doubt notice the laid up fleets, in ports around the world.

The change in shipping rates may also open opportunity for some.  Ship operators are willing to ship at bare minimum rates just to cover operating costs and pay crew wages.  The low rates are turning the bulk grain markets upside down.  In some instances it is now cheaper to import wheat from half way around the world, than it is to ship wheat by rail from closer local markets.  Read more on this.

Here is a short video documenting the numerous laid up ships in Subic Bay, Phillipenes.

Unfortunately, there is probably more bad news in store and things will get worse before they get better.  If you have been directly impacted by the downturn in the maritime industry, leave a comment and let us know your experience.