According to data released by the UNCTAD, shipping volumes are expected to increase by 4%-5% in the next decade. However, the changes in the geopolitics along with the COVID-19 pandemic has slowed down the industry considerably.
As the world continues to rely on the shipping industry to move global trade, the industry too relies on a growing world economy to push demand. With big private players, getting into the handling on ports and cargo, efficiency and productivity is at an all-time high.
Technological developments to have aided the old industry, with a conscious move being made towards rapid technological advancements. In this article, we are going to look at the top five trends in the shipping and maritime industry, which are going to define 2020 and beyond.
Top 5 Trends in the Maritime Industry in 2020: The List
- The Adoption of Blockchain Technology-
Blockchain technology is like a digital transaction and ledger list of all official billings, supply systems and other chains. It helps arrange everything in chronological order, thereby improving efficiency and giving updated information.
While Blockchain technology was developed to help Bitcoin as its official mode of transaction, it is now being used in various other industries. In the next few years, Blockchain technology is expected to grow massively in the maritime industry.
- The move towards Sustainable Shipping-
Many studies being carried out in the maritime industry show that the adoption of green technology will boost profitability and bring down costs. This is why many shipping operators are consciously trying to adopt newer technologies to help them go green.
This involves using solar panels on ships to help ease the power requirements on the ship. It also involves using highly efficient Smit gas systems to help in fuel utilization in an effective manner. This move towards green technology is going to be a big game-changer in the next few years.
- The fallouts of the COVID-19 Pandemic-
The severe economic depression in the aftermath of the pandemic will slow down the shipping economy. Please bear in mind that cargo ships carrying imported goods are going to see a decline. However, tankers carrying fuel are still expected to dominate the seas.
As and when the global economy picks up, the shipping industry will see a marked boom. Countries like China, India and other developing economies are going to boost consumption and trade in the global seas.
- The changing nature of International Affairs and Relations-
Even before the pandemic hit us, relations between nations were at a significant low point. However, post the pandemic, the role of China in the pandemic has forced many countries to rethink trade and economic relationships.
With major economic powerhouses in the world have issues and problems with one another, the shipping industry is set to suffer from a setback at multiple levels. US relations with Iran, China and other European countries are being closely watched in the maritime industry.
- The use of Data Analytics and other technology-
Like any other major industry, the use of data in the shipping industry is expected to bring many benefits. Many of the big shipping companies and operators, who are using data analytics to streamline operations, improve efficiency, cut down on wastages and supplication of work.
By using data, the maritime industry will be able to see clearer trends, make projections and prevent surpluses. In addition, there are many incidents of cybercrimes, which are also being reported in the industry. This is also one area, which is going to see growth and development in the next few years.
There is no doubt that the maritime industry is dynamic. However, the industry needs to adopt technological advancements in order to improve almost all aspects of the operations. The shift towards green technology, the adoption of data and the changing nature of world affairs is going to dictate the future of the industry.