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Ocean Freight Market Size, Share, and Analysis, By Type (Less than Container Load (LCL), Full Container Load (FCL), and Breakbulk Cargo), By Carrier Type (Tankers, Bulk Carriers, Containers, and Others), By Application (Manufacturing, Electronics, Agricultural, Automotive, and Others), By Region (North America, Europe, Asia-Pacific, and Rest of the World), And Regional Forecast 2024-2034
Ocean Freight Market is projected to exhibit a Compound Annual Growth Rate (CAGR) of 3.2% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 74.7 billion and is projected to reach USD 105.7 billion by the completion of 2034.
Ocean freight is the process of transportation of goods by sea or ocean with the help of big cargo vessels. It is an important component in international trade and transportation, which allows the movement of goods across continents and countries. In contrast to other shipping options, ocean freight is a cheaper and low-maintenance way to transport heavy items. Ocean freight transports products, machinery, raw materials, and commodities in containers for ease of handling and security. In addition, the transportation of goods by ocean relies on complex logistics arrangements that involve ports, docks, shipping companies, freight forwarders, and customs officials. Besides, ocean transportation depends on well-established routes that link major ports globally.
Ocean freight market is expected to reach USD 105.7 billion during the forecast period. With the expansion of global economies, the demand for shipping goods internationally will increase, which will result in growth in the ocean freight industry. Additionally, the high popularity of online shopping is driving this growth as more people want fast delivery of their online orders. Investments in ports and logistical networks are improving the efficiency of maritime transportation and increasing its capacity to accommodate higher volumes of goods. Besides, developments in technology like automation and digitalization are improving the dependability of shipping operations. Also, companies are improving their global supply networks by using economical ocean shipping to transport large volumes across extended distances.
Source: Fatpos Global
Ocean freight market is classified based on Application into Manufacturing, Electronics, Agricultural, Automotive, and Others. The manufacturing segment will dominate the ocean freight market as manufacturing sectors produce several goods that require effective transportation options like ocean freight. They depend on global supply chains to get raw materials and deliver finished products, thus using ocean freight for reliable shipping networks. Furthermore, the manufacturing sector ships a wide range of items like machinery, tools, and final goods. Manufacturers rely on ocean shipping to comply with global trade regulations and logistical needs for their global operations. Thus, the need for affordable transportation in the manufacturing segment solidifies its dominance in the ocean freight market.
Ocean freight market is segmented based on Type into Less than Container Load (LCL), Full Container Load (FCL), and Breakbulk Cargo. The Full Container Load (FCL) segment is expected to lead the market due to its capacity to securely handle large shipments. FCL provides effective and safe shipping by allocating an entire container for the goods of one shipper, thus minimizing handling and the likelihood of damage. Moreover, due to economies of scale, full container load (FCL) is more cost-effective for large shipments and results in lower shipping costs per unit over long distances. Also, FCL shipments typically arrive quicker than LCL shipments as they avoid processes like consolidating and deconsolidating.
Source: Fatpos Global
Global Trade Growth is Important to Boost the Adoption of Ocean Freight
Global trade expansion fuels the ocean freight market by driving up the global need for shipping goods. As economies grow, people want a wider range of products from around the world. This shows an increase in the number of items that require international shipment, which leads to a high demand for ocean freight globally. The demand for cost-effective shipping solutions like ocean freight is growing, which results in a rise in the market for efficient transportation of various types of cargo. Furthermore, when countries agree to cooperate economically, they depend more on ocean transportation to transport commodities which helps in market growth. In addition, developing economies, which are looking to tap into international supply chains, have increased the need for ocean shipping services.
Technological Developments Will Aid the Market
Technological advancements play a major role in the growth of the ocean freight market. Automated systems in ships and ports simplify the process of loading, unloading, and handling cargo, which results in quicker and more efficient operations. Also, the use of websites and apps makes it simpler to manage shipments by monitoring them closely. The use of IoT devices and sensors during the transporting of goods offers fast information on the status of cargo, which ensures that products reach their destination in the best possible state. The use of advanced analytics improves route optimization and demand prediction, which results in more efficient resource allocation and low costs.
Geopolitical Tensions Can Limit the Growth of the Ocean Freight Market
Geopolitical tensions between nations are one of the major restraints for the growth of the ocean freight market. These tensions between countries may disturb existing trade paths and result in uncertainty in shipping timetables. Countries often set tariffs and regulations during times of high political tension, which can impede trade and reduce the volume of ocean freight demanded. Furthermore, increasing tensions can result in more security measures being put in place at ports and transit routes, potentially presenting additional logistical hurdles. Besides, political tensions can lead to economic instability, thus affecting consumer sentiment and the need for goods transported via sea.
Ocean Freight Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region is anticipated to dominate the ocean freight market as countries such as China, Japan, and many others are a major manufacturing center. This region stands out in ocean freight due to its large production and international shipping volume of goods. Moreover, the region has some of the world's most advanced and busiest ports that can efficiently manage large volumes of cargo.
Simultaneously, the need for affordable transportation options and growing commercial activity are contributing to the growth of the ocean freight market in the North American region. This growth is supported by improving infrastructure and the region's strategic location, which strengthen its position as a global logistics hub.
Source: Fatpos Global
COVID-19 pandemic had a substantial impact on the Ocean Freight Market. Initially, it disrupted the supply chains worldwide. Lockdowns and measures resulted in the closure of factories and resulted in low output and delays in shipping. This caused a decline in the speed of goods delivery and led to congestion in the maritime shipping industry. Furthermore, increased safety regulations and unexpected increases in demand resulted in delays in both loading and unloading cargo. However, the pandemic accelerated the adoption of digital solutions in the ocean freight industry. Remote tracking and automated systems became increasingly common and helped in navigating pandemic challenges and improving productivity.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 3.2% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Type |
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By Carrier Type |
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By Application |
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By Region |
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Ocean Freight Market size was valued at USD 74.7 billion in 2023 and is projected to reach the value of USD 105.7 billion in 2034, exhibiting a CAGR of 3.2% during the forecast period.
The Ocean Freight Market refers to the global industry of transporting goods by sea using large cargo ships. It is a vital component of international trade and logistics, facilitating the movement of goods across continents and between countries.
The Manufacturing segment and the Full Container Load (FCL) segment accounted for the largest Ocean Freight Market share.The Manufacturing segment and the Full Container Load (FCL) segment accounted for the largest Ocean Freight Market share.
Key players in the Ocean Freight Market include Maersk Line, Evergreen Marine Corporation, Wan Hai Lines, Hapag-Lloyd, CMA CGM Group, Yang Ming Marine Transport Corporation, ZIM Integrated Shipping Services, ONE (Ocean Network Express), Hyundai Merchant Marine (HMM), MOL (Mitsui O.S.K. Lines), COSCO Shipping Lines, MSC Mediterranean Shipping Company, NYK Line, PIL (Pacific International Lines), HMM, and Other Prominent Players.
Technological advancements and global trade growth are the factors driving the ocean freight market.
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