China Shipping Agency Services Market- Growth, Trends, COVID-19 Impact, and Forecast (2023-2028)

The Shipping Agency Services in China is expected to grow at a CAGR of more than 3.5% during the forecast period (2023-2028).

Key Highlights

• China is the largest producer and exporter of industrial goods in the world, with exports accounting for 39.18% of its GDP in 2020. The nation is also, after the United States, the second-largest importer in the world. China is the world's top producer of shipping equipment, manufacturing 80% of the world's ship-to-shore cranes, 96% of its shipping containers, and 48% of its shipbuilding orders in 2020. According to the U.S. Office of Naval Intelligence, China currently has the largest navy in the world in terms of total battle force ships, surpassing the United States, which has the second-largest fleet of commercial shipping boats.
• The two largest shipping firms in China are the government-owned COSCO Shipping and China Merchants Group. The largest shipping business in the world, COSCO Shipping, claimed to have a fleet of 1,371 ships with a combined carrying capacity of 113.7 million DWT. China's trade-oriented economy depends heavily on sea freight transit, which has also contributed significantly to the growth of the nation. The main growth factors in China's sea freight transportation sector are as follows: China is organically outpacing other Asian nations in market share thanks to its overall competitiveness. The fundamental engine driving the sector is China's phenomenal rate of economic growth.
• Manufacturing have stopped, trade volumes have decreased in many nations as a result of the COVID-19 pandemic in 2020, and the growth of the transportation industry has been considerably hampered. In a very short amount of time, the internal pandemic was successfully contained, the economy slowly recovered, industrial output quickly recovered, domestic products were provided to the global market, and demand for export commerce increased.

China Shipping Agency Services Market Trends

China’s Global Investment in Shipping Ports

More maritime ports than any other nation are currently located in China, including seven of the top ten busiest ports in the world. China has more than 100 ports in roughly 63 different nations in addition to its enormous buildup of domestic shipping infrastructure. The "big three" terminal operators China Merchants Group (CMG), CK Hutchison Holdings, and China Ocean Shipping Company own more than 80% of China's overseas port terminals. The first two are state-owned businesses, but CK Hutchison is a Hong Kong-based private business with strong ties to mainland China.

A 99-year lease at the Hambantota port in Sri Lanka, a 40-year lease at the Gwadar port in Pakistan, and a USD 350 million investment in the port of Djibouti are three significant examples of Chinese port expansion in the Indo-Pacific. China's first military outpost is situated in Djibouti, close to a crucial strategic passageway between the Red Sea and the Gulf of Aden. According to estimates, China now has control over roughly ten percent of the port capacity in Europe and the Mediterranean. Le Havre and Dunkirk in France, Antwerp and Bruges in Belgium, Noatum in Spain, Vado in Italy, Kumport in Turkey, and Piraeus in Greece are a few examples of this.

Growing Adoption of Innovative Technologies is a Prominent Trend

The effectiveness of maritime operations can be significantly increased by technology. Currently, there are numerous parties involved in moving goods from a manufacturer to a customer, including transporters, ports, customs, etc. The parties exchange a large amount of the actual documents. As a result, there may be instances where things have arrived but the paperwork has not. Integrated digital platforms, such Port Community Systems, link the systems of many businesses, including shipping lines and facilities, that make up a seaport community.

A MoU was recently signed by a number of international businesses and port authorities from around the globe to ensure the compatibility of numerous international maritime technology platforms, which will necessitate the creation of common data standards and Application Programming Interfaces. Academic institutions are crucial in the development and transfer of technology. In order to assist developing nations in gaining access to the technical expertise they require to reduce shipping emissions, Maritime Technologies Cooperation Centers (MTTCs) have consolidated under the Global MTTC Network.

To better comprehend, utilise, and safeguard oceans, seas, and rivers, organisations like the Dutch Research Council promote cooperation between authorities, businesses, and academic institutions. Research on environmentally friendly ship designs and electrification technologies are among the Council's funded projects.

China Shipping Agency Services Market Competitor Analysis

SINO Shipping, COSCO SHIPPING Development Co., Ltd, Sinotrans Limited, China Marine Shipping Agency Co., Ltd, and JiuFang Ecommerce Logistics are market participants in China Shipping Agency Services. The competition amongst service providers is further heightened by the strict regulatory requirements that must be met. Businesses participate in M&A transactions to develop their product lines and expand regionally.

China is one of the major participants in the global marine trade. Several factors like enhanced maritime connectivity, government prioritization, development of port infrastructure, etc. have generated fantastic economic benefits for the country driving the Shipping Agency Services market in China.

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• The market estimate (ME) sheet in Excel format
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