Technology is favoured shipping investment

Those who support M&A or the formation of a joint venture, pool or alliance as a means of industry investment is down 9%, from 47% to 38%, reported Norton Rose Fulbright’s 2017 transport survey.

15% supported the development of new geographical and sectoral markets, while just 9% voted for fleet upgrades and 8% for infrastructure improvements.

Not including fuel efficient and low carbon technology, which the report acknowledged as significant in helping operators to comply with environmental regulation, 46% of respondents said that big data and predictive analytics would be the most significant driver of change in the shipping industry over the next five years.

A further 19% said that software supporting Mobility as a Service has the greatest potential to transform the industry.

37% report that current market conditions are positive for the shipping industry, compared with 15% in 2016, 33% in 2015, and 69% in 2014.

65% of the 63% who do not consider current conditions to be positive blame overcapacity and 35% of all respondents believe that overcapacity poses the greatest challenge to the operational efficiency of the shipping industry. Another 14% said the greatest challenge was a lack of suitably qualified people, while 13% believed it was emission controls.

Of the 37% who believe current conditions are positive, 36% cite improved economic conditions, while 19% report that overcapacity issues have been largely resolved. Continued lower oil prices are also assisting the industry, according to 16%.

43% said increased environmental regulation has had the greatest impact on the shipping industry over the past decade.

China, India and the US were named as offering the most attractive investment opportunities over the next two to five years.