by The shipbroking market deals in booking ships for transportation of goods across countries by sea. Shipbrokers act as an intermediary between ship owners and charterers and facilitate the leasing of ships for a mutually agreed period of time or voyage. They help charterers in availing ships as per their cargo needs while ensuring optimal utilization of ships for owners. The growing cross-border trade and outsourcing of manufacturing activities have fueled the demand for seaborne trade. Major commodities transported via sea routes include oil and gas, iron ore, grains, coal, and containers. The dependence on sea transport for bulk cargo movement is expected to drive the growth of the shipbroking market over the next decade.
The Global shipbroking market Demand is estimated to be valued at US$ 289.53 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the shipbroking market are Doosan Heavy Industries & Construction,Toyota Turbine and Systems Inc.,Ballard Power Systems Inc.,Mitsubishi Electric Corp. ,Suzlon Energy Ltd.,Vestas Wind Systems A/S,Rolls-Royce Plc,Capstone Turbine Corp.,Sharp Corp.,General Electric. Growing trade volumes have increased the demand for commercial ships. The dry bulk carrier segment dominated the market owing to higher demand for transportation of raw materials. Technological advancements such as vessel tracking and digital documentation have improved efficiency in the industry.
Market trends
Increased automation and use of digital platforms is one of the key trends being witnessed in the shipbroking market. Technology companies are developing optimisation and predictive tools to enhance operations. Another trend is the integration of sustainability practices where shipbrokers are focusing on environment-friendly fuels and evaluating emission reduction potential while fixing vessel deals.
Market Opportunities
Development of self-sailing ships using automation and AI provides new growth prospects for shipbrokers. They can capitalize on the opportunity to arrange deals for autonomous fleets in the future.Adoption of green fuels like hydrogen, ammonia and bio-methanol also opens up opportunities to broker specialized vessels equipped with alternative fuel technologies.
Impact of COVID-19 on Shipbroking Market
The COVID-19 pandemic has significantly impacted the growth of the shipbroking market. In the initial months of the pandemic, when lockdowns were imposed globally, maritime trade came to a complete halt. This led to a significant decline in demand for shipbroker services. Various shipping companies put their vessel orders on hold, which negatively impacted the newbuilding market.
However, as lockdowns started to ease in late 2020 and consumer demand picked up, shipping activities started to resume gradually. This led to improvement in demand for shipbroker services, though it remained below the pre-pandemic levels. Shipbrokers played a crucial role in facilitating cargo transportation, especially for essential commodities, during the pandemic. They helped ship owners and charterers navigate through operational challenges posed by COVID-19 such as delays, rerouting, lay-ups, etc.
Going forward, while risks of subsequent COVID-19 waves remain, the gradual opening up of economies is expected to boost maritime trade and drive the growth of the shipbroking market. Shipbrokers are likely to witness increased demand for brokerage of cargo ships, tankers, bulk carriers and container vessels used for transportation of goods globally. They are adapting to new working models and digital technologies to ensure business continuity. Initiatives like just-in-time shipping and inventory management are also expected to drive growth in shipbroker services in the long run.
Concentration of Shipbroking Market by Geographical Regions
The shipbroking market in terms of brokerage revenue is highly concentrated in Asia Pacific, especially in Singapore, China and Japan. Singapore, being one of the major shipbroking hubs globally, accounts for over 25% of the total shipbroker commission earned worldwide. It is home to many reputed shipbrokers and offers world-class infrastructure and connectivity to serve the shipping industry.
China and Japan are also amongst the top shipbroking locations given their strategic geographic position on major trade routes and large merchant fleets. Significant shipowning interests and shipbuilding activities in these countries generate substantial demand for shipbroker services. As maritime trade continues to increase within the Asia Pacific region as well as with the rest of the world, the concentration of the shipbroking market is likely to remain highest in Asia going forward.
Fastest Growing Region for Shipbroking Market
Middle East is expected to emerge as the fastest growing regional market for shipbroking over the forecast period. Being situated between major continents along important global trade routes has provided the countries in the region with strategic advantages. Rising oil shipments coupled with initiatives to develop free trade zones has boosted maritime trade involving the Middle East.
Countries like UAE, Saudi Arabia and Qatar have shown significant growth in fleet ownership. They are also investing heavily in development of ports and logistical infrastructure. This is generating increased demand for various shipbroker services including sale and purchase, chartering as well as marine insurance. Further expansion of trade relations with Asia and Africa is likely to drive strong growth in shipbroking activities across the Middle East.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
