Every industry seems to have suffered a glitch in 2020. Unfortunately, 2021 does not signify any difference. With the pandemic still roaming, most of the sectors will continue to experience considerable challenges.
Container shipping, however, seems to be gaining some momentum. With international logistics disrupted, most merchants currently rely on the shipping sector to deliver goods to different corners of the world.
What more should you expect in the shipping industry this year? Here are some of the trends in the shipping industry that you should expect to come across in 2021.
Adoption of Digital Technology
The Covid-19 pandemic has shown how the use of technology is important. In the shipping sector, the use of paperwork has reduced as a way of reducing human contact, and in its place, new technology-driven methods are being used.
You can also turn to performance monitoring to get real-time data about the progress of your shipment through digital technology.
Shipping Time to Get Shorter
There is no doubt that the current pandemic has shown why many countries need to work together. However, it has also watered down the gains of globalization and reliance on distance support.
In this case, countries and companies are likely to favor supplies from neighboring companies. This will create a situation where the shipping distances get shorter in 2021.
Higher Freight Rates
Freight shipping was already becoming expensive in 2019 and at the beginning of 2020. The pandemic has made the situation worse. There are no expectations that new vessels will be joining the industry.
As such, those available will continue to increase their freight rates. They are taking risks moving from one country to another which means you should prepare to pay premium prices.
Increased Carrier Discipline
Much has been done to fight the coronavirus pandemic around the world. Some countries seem to have won the war. Others are using vaccines to enhance the immunity of their populations.
However, data shows that many countries are actually in the middle of a pandemic. This does not mean that freight services will not be present in such countries. Carrier discipline like social distancing, port testing, and masking up will continue in 2021.
Increased Environmental Sustainability
The shipping sector produces 940 million tons of carbon dioxide every year. With the increased sustainability practices, there is no doubt that this will not be tolerated.
There are numerous emission control regulations that are being implemented currently. Ships will be forced to look for low-sulfur fuel in the coming days. And it is the only way they will get the necessary clearance in many countries.
What Next for the Shipping Industry?
Everyone knows the importance of the shipping industry in the world. This is the sector that has kept the world rolling during one of the hardest periods. However, it does not mean that the sector will avoid the challenges that will face almost every other industry in 2021.
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