Although all businesses are subject to the economic laws of supply and demand, no industry is more directly affected than the global shipping sector. It is directly tied to the world-wide demand for the global supply of consumer goods as close to 90 percent of the world's cargo is transported by sea. With an ever-growing global economy with more members than ever contributing to it's strength, it is important that the major shipping industry leaders ensure that they make the right investments and adjustments so the whole global economic system functions efficiently and effectively.
Shipping container lease rates have generally been used by analysts as a barometer of sorts to measure the strength of the global economy. It simply always boils down to supply and demand. If the global economy in some regions are not shipping as many goods then the shipping lease rates will be lower. As these regions' economies gain strength then the lease rate prices will go up. The key for the shipping industry leaders is to manage their supplies, whether it be container ships, shipping containers or if they are port operators, in order to be prepared for when the global demand increases in order to capitalize on their opportunities.
Despite the economic turmoil in the United States and Europe over the last five years including the most recent problems in Cyprus, the global economy has continued to grow steadily. As a result, global container leasing rates have increased 40 percent, in the last two years. The shipping industry leaders expect that this trend will continue right up to the opening of the Panama Canal Expansion in 2015 and right up to 2020. This is due mainly to the fact that the emerging markets of the world including China, India, Russia, Brazil and Africa represent 50 percent of the entire world's population and as they prosper the demands on the shipping industry will increase simultaneously.
I'm certain that many analysts would agree that it's no wonder global shipping industry leaders and private investors are confident that their investing strategies in the past, are going to deliver investment profits to them in the future. Since the 1990's, the global economy has almost doubled and the shipping industry was there all the way delivering the goods time and again. Although there were some slow times along the way and shipping rates were lower at times, it looks as though the rates are going to be on an upward trend for the next number of years. That is good news for many in the shipping sector. It will make them stronger collectively. And by doing so, the global economy will continue to improve as a result.
Shipping container lease rates have generally been used by analysts as a barometer of sorts to measure the strength of the global economy. It simply always boils down to supply and demand. If the global economy in some regions are not shipping as many goods then the shipping lease rates will be lower. As these regions' economies gain strength then the lease rate prices will go up. The key for the shipping industry leaders is to manage their supplies, whether it be container ships, shipping containers or if they are port operators, in order to be prepared for when the global demand increases in order to capitalize on their opportunities.
Despite the economic turmoil in the United States and Europe over the last five years including the most recent problems in Cyprus, the global economy has continued to grow steadily. As a result, global container leasing rates have increased 40 percent, in the last two years. The shipping industry leaders expect that this trend will continue right up to the opening of the Panama Canal Expansion in 2015 and right up to 2020. This is due mainly to the fact that the emerging markets of the world including China, India, Russia, Brazil and Africa represent 50 percent of the entire world's population and as they prosper the demands on the shipping industry will increase simultaneously.
I'm certain that many analysts would agree that it's no wonder global shipping industry leaders and private investors are confident that their investing strategies in the past, are going to deliver investment profits to them in the future. Since the 1990's, the global economy has almost doubled and the shipping industry was there all the way delivering the goods time and again. Although there were some slow times along the way and shipping rates were lower at times, it looks as though the rates are going to be on an upward trend for the next number of years. That is good news for many in the shipping sector. It will make them stronger collectively. And by doing so, the global economy will continue to improve as a result.
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