As with many industries, 2020 has been a challenging year so far for cargo transportation. Global economic trade is the driver in the cargo shipping market and with the decrease in growth worldwide, predicting when the market will rebound has been difficult. Industries such as aerospace, energy and oil and gas that use the project cargo sector have all been affected. Cargo shipping firms are also facing challenges due to environmental changes and geopolitics.
Cargo Shipping Investment Continues to Increase
Container shipping is being used more often as a method of transporting goods. The free trade agreements that are in the works among several countries are another source of growth. Supply chain management has been disrupted in part because of the larger market share attributed to developing countries.
Investments in the supply chain and its infrastructure have helped the growth of this market. The development and upgrading of ports have led to growth in the cargo shipping market. Countries in Asia, such as China, have contributed to an increase in cargo shipping. The Middle East and Africa are expected to have the highest growth potential in the future due to their oilfields. The stabilization of the oil and gas industry has led to the need for transporting equipment. Therefore, the project cargo industry must create new ways to meet the demands of these industries and geographical regions.
Continued Growth in China
A large amount of heavy cargo is manufactured in China and exported globally. As the largest steel producer in the world, the market in China is predicted to grow more than 2% during the next four years. Other countries import large steel structures from China making it a hub of cargo shipping. The Belt and Road Initiative (BRI) have increased investments in infrastructure in China and other neighboring countries. The project cargo market will also increase with a rise in oil prices in the short-term, but a long-term decrease is expected which will create a decrease in new project investments.
Issues Within the Industry
In order for the project cargo industry to remain competitive and help the transportation industry function as a whole, it must create new strategies to deal with the following obstacles:
Transportation Costs: One of the biggest obstacles the industry faces is the cost of transportation. Industry and environmental regulations mean higher costs for each shipment. High fuel prices are one of the highest variables in the equation, and the price of fuel surcharges increase transportation costs for shippers.
Technological Advances: To remain competitive in the changing logistics arena, the project cargo industry must get on board with technological advances. Today’s supply chain demands reliability and dependability. Doing so in a cost-effective way will ensure that the industry continues to advance, and customers get what they need. This includes the tracking of where each shipment is at all times.
Fragmented Industry: Another challenge within the project cargo industry is the competitive landscape. The market in countries like China is fragmented because of many small and medium-sized companies. The equipment needed to transport cargo has tight regulations and requirements. This coupled with the coordination of trucks, ships, and cranes necessary to manage this time of load means that the right partners are needed to handle project cargo.
Customer Service: Today’s digital environment means that reliability and dependability are at the root of customer retention. Customers want to know exactly where their shipment is at all times and when they expect delivery. With this increase in expectations on the customer side, the need for expedited shipping with real-time tracking information is imperative.
Red Arrow Project Cargo Solutions
If you are in need of cargo solutions, Red Arrow Logistics is an expert in managing heavy international and domestic cargo shipments. Our professionals will assist you in the planning, site inspection, and route guides to make sure of compliancy. We support the project cargo market with material movement and job site management. Heavy lift equipment will be delivered to the job site with certified operators.
Our project cargo services include:
- Multi-Axle Heavy Haul Equipment
- Out of Gauge and Specialized Services
- Project Planning and Permits
- Cargo Insurance
- Riggers and Crane Services
- Engineered Transport Plans
We offer cargo insurance for protection whether you ship by ocean, air, or ground. We also offer additional cargo insurance beyond carrier liability for any load. Contact us today to find out how we can assist in your cargo shipping needs.
Your Trusted Partner
At Red Arrow Logistics, we provide expertise and white glove customer service with fast-growing, complex, and high-value supply chains. As the next-generation model of logistics companies, we offer tailored transportation and logistics solutions — from single shipments to complex over-dimensional and international orders.
Red Arrow offers the scale and scope of services including air, ocean, and ground transportation to meet the budget and schedule requirements of the largest and smallest companies alike. If we can be of assistance, please email us at email@example.com or give us a call at 425-747-7914.