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Shipbroking Market Is Estimated To Witness High Growth Owing To Opportunity In Dry Bulk Shipments

Sushil Mahalle's Articles
Shipbroking Market Is Estimated To Witness High Growth Owing To Opportunity In Dry Bulk Shipments

Shipbroking refers to the business of arranging ship charters and other maritime transactions for ship owners and charterers. Shipbrokers help facilitate the movement of cargo by matching supply and demand in the shipping industry. They represent owners and charterers in negotiating contracts for the hire of vessels and other shipping services such as cargo space reservation and vessel scheduling. Shipbrokers play an important role in dry bulk commodities transportation as bulk carriers are used to transport large volumes of homogeneous cargoTYPES such as grains, coal, ore and fertilizer between ports.

The global Shipbroking Market is estimated to be valued at US$ 289.53 Bn  in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity

The growing demand for dry bulk commodities around the world presents a major market opportunity for shipbrokers. Dry bulk cargo transportation accounts for over half of total seaborne trade. As international trade of essential commodities and raw materials increases with global economic growth and development, the demand for dry bulk cargo shipments is projected to rise substantially. This will drive the need for bulk carriers and shipbroking services to efficiently transport rising volumes of commodities. Shipbrokers can capitalize on this opportunity by expanding services for dry bulk shipments and facilitating greater cargo volumes amid the projected increase in dry bulk trade.

Porter's Analysis

Threat of new entrants: The shipbroking industry requires substantial capital requirements and experience to operate reducing the threat of new entrants. Bargaining power of buyers: Ship owners have moderate bargaining power as they can negotiate on the brokerage fee and switch brokers if not satisfied. Bargaining power of suppliers: Ship owners are dependent on brokers for vessel chartering services so brokers have strong bargaining power over ship owners. Threat of new substitutes: There are limited substitutes for shipbroking services due to specialized nature of services and expertise required. Competitive rivalry: The competitive rivalry in the industry is high as brokers compete intensely on brokerage fees and value added services.

SWOT Analysis

Strengths: Established global networks, expertise in shipping market trends, tailor-made solutions as per client needs. Weaknesses: Dependence on shipping market fluctuations, intense competition limits pricing power. Opportunities: Growth in international seaborne trade, demand for specialized ship types like LNG carriers, expansion in emerging markets of Asia and Africa. Threats: Economic slowdowns impact trade volumes, regional conflicts affecting trade routes, overcapacity pressures margins.

Key Takeaways

The global Shipbroking Market Size is expected to witness high growth during the forecast period of 2024 to 2031 supported by revival in global trade post pandemic.

The Asia Pacific region dominated the shipbroking market in 2024 with over 40% share led by China, Japan and South Korea being large ship owning nations and top ports. Europe and North America are other major regions for shipbroking services.

Key players operating in the shipbroking market are Doosan Heavy Industries & Construction,Toyota Turbine and Systems Inc.,Ballard Power Systems Inc.,Mitsubishi Electric Corp., Suzlon Energy Ltd.,Vestas Wind Systems A/S. Shipbrokers offers an array of services including sale and purchase transactions, charter brokerage, technical brokerage, logistic brokers and new building brokerage. By ship type, dry bulkers, tankers, gas carriers and container ships are the key segments shipbrokers operate in. The growth of LNG trade has boosted opportunities for gas carriers brokers.

Explore more related article on this topic: https://www.newsanalyticspro.com/shipbroking-market-demand-analysis/


Sushil Mahalle's Articles
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