As the maritime industry recovers from the “Great Recession,” shippers, carriers and ports are experiencing a new set of market dynamics. Concerns over port capacity constraints have largely subsided as forecasts for trade growth have been adjusted to more moderate levels.
Slow-steaming and a more disciplined approach to controlling costs and capacity management are among the factors influencing vessel deployment decisions, as ocean carriers strive to sustain their recently improved financial performance following disastrous results of the last few years.
Given this cautious mindset, a compelling business case will need to be demonstrated to justify the expansion of an existing itinerary, and especially to warrant the launch of any new service.
Those ports and markets that enjoy strong demographics but are underserved in terms of direct liner connections present the most attractive candidates for new and expanded services.
Given its proximity to an expanded Panama Canal and prime location at the nexus of the major east-west and north-south trades, the Gulf Coast is poised to emerge as an attractive alternative to the U.S. East and West coasts. With large local population centers fueling distribution center development and a growing industrial and manufacturing base, served by expanding terminals and intermodal links, the Gulf Coast is in a prime position to attract new all-water services.