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2022

Cargo Shipping Market

Cargo Shipping Market Size, Share, Competitive Landscape and Trend Analysis Report by Cargo Type (Liquid Cargo, Dry Cargo, General Cargo), by Ship Type (Bulk Carriers, General Cargo Ship, Container Ship, Tanker, Reefer Ship, Others), by Industry Type (Food and Beverages, Manufacturing, Retail, Oil and gas, Automotive, Pharmaceutical, Electrical and Electronics, Others): Global Opportunity Analysis and Industry Forecast, 2022-2031

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Author's: Kartikey Verma | Lalit Janardhan Katare
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The global cargo shipping market size was valued at $2.2 trillion in 2021, and is projected to reach $4.2 trillion by 2031, growing at a CAGR of 7% from 2022 to 2031.

Cargo shipping is the means of transport used to transfer items, goods, and cargo from a port to a destination by ship. Shipping is the cheapest means of transportation per ton. Preferred for economical and efficient long-distance transport with low environmental impact. The greatest advantage of cargo transport is the ability to transport bulky cargo that cannot be transported by land or air. In addition, cargo ships are usually equipped with cranes and other similar equipment for loading and unloading cargo. Presently, the cargo shipping industry is dominated by Asia-Pacific followed by Europe, North America, and LAMEA. Asia-Pacific is expected to maintain its dominance in the global market, particularly in China, South Korea, and Japan due to some distinct advantages, such as an increasing number of favorable trade agreements and growing demand for crude oil.

Cargo Shipping Market

The cargo shipping market is driven by factors such as an increase in international marine freight transport, a rise in demand for cargo transportation through ships, and a surge in trade-related agreements. However, fluctuations in transportation & inventory costs and global trade tensions restrict market growth. Moreover, automation in marine transportation, an increase in marine safety norms, and the growth of the digital freight forwarding industry create lucrative growth opportunities for the market.

The market segmentation is based on cargo type, ship type, and industry type. by cargo type, it is divided into liquid cargo, dry cargo, and general cargo. by ship type, it is classified into bulk carriers, general cargo ships, container ships, tankers, reefer ships, and others. by industry type, it is divided into food & beverages, manufacturing, retail, oil & gas, automotive, pharmaceutical, electrical & electronic, and others. Geographically, it has been analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Cargo Shipping Market
By Industry Type
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Retail segment is projected as most lucrative segment

Prominent players profiled in the cargo shipping market report include A.P. Moller-Maersk Group, CMA CGM S.A, COSCO Shipping Co., Limited, DB Schenker, DHL Global Forwarding, Evergreen International Corp., Hapag-Lloyd AG, MSC Mediterranean Shipping Company S.A, Ocean Network Express Pte. Ltd., and Yang Ming Group.

Asia-Pacific comprises China, Japan, India, South Korea, and the rest of Asia-Pacific. The rest of Asia-Pacific includes countries such as Indonesia, Singapore, Thailand, Vietnam, and Malaysia. China is the largest logistics market in the region due to its huge population of the country and the presence of a large manufacturing base. The growth of the regional market is mainly attributed to the booming e-commerce industry in emerging economies. In addition, increased adoption of outsourced logistics services in the region is driving the growth of the cargo shipping market in Asia-Pacific. In addition, surge in disposable incomes is expected to drive growth in demand for imports of commodities and finished goods, which further supplements seaborne trade in emerging economies, which propels growth of the market.

Furthermore, the strong economy of Japan, the development of infrastructure, and the rise in trade facilitation through agreements such as the South Asian Preferential Trade Agreement (SAPTA) are the factors that are expected to foster the growth of the cargo shipping market during the forecast period.

Cargo Shipping Market
By Cargo Type
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Liquid cargo segment is projected as most lucrative segment

In addition, the rapid increase in industrial & manufacturing activities coupled with an increase in cross-border trade & export activities is propelling the logistics sector in China which creates growth opportunities for the cargo shipping market. For instance, according to a report from the National Intellectual Property Administration, China's cross-border e-commerce transactions are estimated to reach about $3.15 trillion (¥20.5) in 2022, maintaining an annual growth rate of 12.4%.   

Some leading companies profiled in the report comprises A.P. Moller-Maersk Group, CMA CGM S.A, COSCO Shipping Co., Limited, DB Schenker, DHL Global Forwarding, Evergreen International Corp., Hapag-Lloyd AG, MSC Mediterranean Shipping Company S.A, Ocean Network Express Pte. Ltd., and Yang Ming Group. The leading companies are adopting strategies such as acquisition, agreement, expansion, partnership, investments, and product launches to strengthen their market position. In August 2022, A.P. Moller-Maersk (Maersk) revamps its Europe to Middle East and Indian Subcontinent network to offer customers improved reliability, resilience, and agility. It connects more cargo via the Maersk hub in Colombo and provides customers with additional flexibility and agility to move cargo between different markets.

In January 2022, Evergreen Marine Corp. acquired the entire stake in a Panama terminal in a bid to strengthen its presence in the Americas and raise its competitive edge. In April 2022, CMA CGM Group and Electrolux announced an agreement to ship 40,000 TEUs of household appliances through CMA CGM’s Cleaner Energy LNG solution. CMA CGM’s low-carbon offering, "Cleaner Energy LNG," allows the cargoes to be shipped on CMA CGM’s dual-fuel LNG-powered vessels, resulting in a 25% reduction in CO2 emissions on a well-to-wake basis (across the entire value chain). Through this major partnership, the CMA CGM Group keeps moving forward to make shipping and logistics more sustainable and reach its goal to go beyond carbon neutrality and become a Net Zero Carbon company by 2050. In June 2022, Yang Ming Group launched the latest Far East-West Coast of Latin America (FE-WCSA, Loop code: SA8) service in July 2022. The new service will offer customers broader service coverage and ensure more reliable services in the FE-WCSA trade. In February 2022, Yang Ming Group launched a new direct flight between China and Australia. The China-Australia-2 Service. This new service is a joint operation with T. S. Lines Ltd., Pacific International Lines (PTE) Ltd., and Sea Lead Shipping.

Increase in international marine freight transport

Marine transportation is one most prominent modes of transportation, especially for freight transportation, owing to its cost-effectiveness. In recent years, the seaborne trade has witnessed significant growth. For instance, according to the United Nations Conference on Trade and Development (UNCTAD), in 2020, international seaborne trade volume reached 10.7 billion tons. Furthermore, according to the UNCTAD (United Nations Conference on Trade and Development) organization report, in November 2021, the global trade for merchandise goods increased in exports and imports. In 2021, the import of goods increased by 13.3% globally and the export of goods increased by 14.3% globally. Moreover, according to the United Nations Conference on Trade and Development (UNCTAD) organization, international maritime trade was increasing during the past years (2010–2019) in 2010 the global maritime trade was 8,408 million tons loaded and it reached 11,076 million tons in 2019.

Increase in demand for cargo transportation through ships

A rise has been witnessed in the demand for the transportation of cargo through waterways. This is attributed to the fact that a number of cargos are efficiently transferred to another end through ships along with ensuring the security of the cargo. Moreover, cargo ships are less expensive for shipping goods as compared to road and air transits, as through ships large volumes of cargo can be transported from one place to another as compared to other transportation means. As per the records of the United Nations Conference on Trade and Development (UNCTAD), which deals with trade, development, and investment issues across the globe, approximately 1,687 million tons of cargo are transported every year in around 177.6 million containers covering 998 billion ton-miles. Recent developments in commercial vessels and giant players’ innovation of better and more efficient cargo ships equipped with the latest technology such as advanced sensors and navigation systems are anticipated to boost the demand for cargo transportation through ships. This eventually is leading to the growth of the cargo shipping market across the globe.

Cargo Shipping Market
By Ship Type
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Other ship type segment is projected as most lucrative segment

Fluctuations in transportation & inventory costs

Carrying goods from one place to another requires a suitable mode of transportation, which means there should be an efficient usage of the medium. The cost incurred in transportation and holding inventory is another important factor that has a deepening impact on logistics. Price is the most significant factor that affects the overall logistics services from the first function till the goods are delivered. This continuous fluctuation in transportation and inventory cost of the material has affected the shipping industry by enabling customers to opt for different methods to transport goods, which eventually restrains the growth of the global cargo shipping market.

Growth of the digital freight forwarding industry

Dynamic market conditions and improvement in the global economy are the key factors driving the growth of the logistics industry. In addition, attributed to rapid globalization, various activities related to trade are witnessing a considerable increase which provides growth opportunities cargo shipping market during the forecast period.

Moreover, digital freight forwarding services are becoming beneficial for cost-sensitive customers who seek an extensive variety of high-quality products with faster delivery timelines. Thus, an increase in trading activities due to globalization is propelling the demand for digital freight forwarding services. The signing of free trade agreements facilitates better trade between two parties and results in a rise in import-export activities, which boosts the development of the entire logistics ecosystem. Reduction or elimination of tariffs, intellectual property protection, and fair treatment of investors are some of the important advantages of free trade agreements. The U.S. currently has around 14 free trade agreements with 20 countries in force.

In Asia, China, Singapore, and India have 47, 44, and 43 FTAs, respectively, which offer lucrative opportunities for logistics to thrive and support the economy of the nations. UK and India are expected to sign an Early Harvest Agreement by March 2022, which permits both nations to establish selective benefits in commodities and services. The decision was taken after a meeting between the Indian and British Commerce and Industry on September 13, 2021. Thus, all these factors are expected to increase import-export activities, thus driving the growth of the market during the forecast period.

Cargo Shipping Market
By Region
2031
Asia-pacific 
North America
Europe
LAMEA

LAMEA would exhibit the highest CAGR of 10.22% during the forecast period

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cargo shipping market analysis from 2021 to 2031 to identify the prevailing cargo shipping market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the cargo shipping market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global cargo shipping market trends, key players, market segments, application areas, and market growth strategies.

Cargo Shipping Market Report Highlights

Aspects Details
Market Size By 2031
Market Size By 2031

USD 4.2 trillion

Growth Rate
Growth Rate

CAGR of 7%

Forecast period
Forecast period

2021 - 2031

Report Pages
Report Pages

350

Cargo Shipping Market By Ship Type
By Ship Type
  • Others
  • Bulk Carriers
  • General Cargo Ship
  • Container Ship
  • Tanker
  • Reefer Ship
Cargo Shipping Market By Industry Type
By Industry Type
  • Food and Beverages
  • Manufacturing
  • Retail
  • Oil and gas
  • Automotive
  • Pharmaceutical
  • Electrical and Electronics
  • Others
Cargo Shipping Market By Cargo Type
By Cargo Type
  • Liquid Cargo
  • Dry Cargo
  • General Cargo
Cargo Shipping Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Russia, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

CMA CGM GROUP, db schenker, COSCO SHIPPING, Mediterranean Shipping Company S.A., Evergreen International Corp., YANG MING Group, Deutsche Post DHL Group, Hapag-Lloyd AG, Ocean Network Express Pte. Ltd., a.p. moller - maersk

Analyst Review

The global cargo shipping market is expected to witness steady growth, due to an increase in seaborne trade and industrialization. The market in developed countries such as the U.S., Canada, Mexico, and Germany experiences slower growth as compared to the developing countries such as China, India, South Africa, and the Middle East, owing to the increased availability of raw materials and low-cost labor in these developing regions.

It is also predicted that the widespread establishment of new ports extends profitable opportunities to the market players in the forecast period. In addition, the market is expected to be boosted depending on the size of the promoted cargo shipping market, a number of agreements have been deployed, including the North American Free Trade Agreement (NAFTA), ASEAN Free Trade Area (AFTA), and the others like the Trans-Pacific Strategic Economic Partnership (TPSEP) further important factor that is boosting the cargo shipping market.

In terms of ocean cargo container throughput and volume growth, the Asia-Pacific region continues to dominate the globe, due to the recent and sustained double-digit increases in exports from China. Factors such as the availability of raw materials, low-cost labor, large coastal line, and an increase in dependency on seaborne trade drive the growth of the market. The international market share of China is growing significantly every year. Thus, China specializes in manufacturing special-purpose containers such as warm-keeping pots and special regional containers for the transportation of special cargo.

Hence, to gain a fair share of the market, major players adopted different strategies. For instance, product launches, partnerships, acquisitions, investment, and business expansion. Among these, product launches are a leading strategy used by prominent players. For instance, in October 2022, Deutsche Post DHL Group launched a fast-task sea freight clearance service at the Eastern Gateway Bonded Zone (EGBZ) at the King Fahad International Airport in Dammam to speed up the processing of LCL sea freight services.

Author Name(s) : Kartikey Verma | Lalit Janardhan Katare
Frequently Asked Questions?

The global cargo shipping market was valued at $2.2 trillion in 2021, and is projected to reach $4.2 trillion by 2031, growing at a CAGR of 7% from 2022 to 2031.

The top companies to hold the market share in Cargo Shipping are A.P. Moller-Maersk Group, CMA CGM S.A, COSCO Shipping Co., Limited, DB Schenker, DHL Global Forwarding, Evergreen International Corp., Hapag-Lloyd AG, MSC Mediterranean Shipping Company S.A, Ocean Network Express Pte. Ltd., and Yang Ming Group,

Asia-Pacific is the largest regional market for Cargo Shipping Market.

By Cargo Type, Dry Cargo is the leading segment of the Cargo Shipping Market.

The upcoming trends of the Cargo Shipping Market in the world are a growing international marine freight transport, increase in trade-related agreements and automation in marine transportation.

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Cargo Shipping Market

Global Opportunity Analysis and Industry Forecast, 2022-2031