Growth options through diversification among shipping agencies in SA
Diversification in shipping
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When the global economic crisis broke out in 2008 few people expected the effects to be so profound and to negatively impact for over a decade, the global container shipping industry. The emergence of mega vessels with capacities of over 20 000 TEUs compounded the problem of overcapacity hence freight rates have remained subdued. Shipping companies have struggled to remain in business and cost cutting measures such as layoffs, slow steaming and organizational restructuring have been implemented yet do not provide long term solutions to yield profitability in the industry. This book examines th...
When the global economic crisis broke out in 2008 few people expected the effects to be so profound and to negatively impact for over a decade, the global container shipping industry. The emergence of mega vessels with capacities of over 20 000 TEUs compounded the problem of overcapacity hence freight rates have remained subdued. Shipping companies have struggled to remain in business and cost cutting measures such as layoffs, slow steaming and organizational restructuring have been implemented yet do not provide long term solutions to yield profitability in the industry. This book examines the effects of the global shipping recession on shipping companies and shows that diversification along the supply chain may offer long term solutions to the problem. To remain in business and generate higher margins, shipping lines must find opportunities elsewhere. Diversification in shipping has been researched on and it is concluded that there are opportunities for shipping companies to diversify along the supply chain. The conditions necessary for such diversification are discussed and this book is a must read to get a perspective from the South African experience in container shipping.
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