Biggest Challenges in the Shipping Industry Today
The shipping industry has dealt with its fair share of challenges throughout the years and is expected to face even more in the future.
Here are a few of the biggest challenges today’s shipping industry is expected to experience.
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Lack of Employees
While many believe that the outcome of the recent British referendum will provide some benefits, it could also lead to immense challenges within the global shipping industry. The biggest that they need to overcome is the possibility of losing maritime employees.
According to a recent survey, 39% of maritime employee in the UK would consider leaving the country and taking jobs overseas. The UK shipping industry is experiencing a shortage of shore-based operation workers, and losing more may result in more industry issues.
New Environmental Regulations
Stricter environmental emissions regulations help to deliver great benefits in the long run, but these could cost a series of short-term challenges for the shipping industry. According to a recent article, these new regulations depend heavily on certain technologies. The government may require companies to implement them to ensure that they meet the new regiments, but doing so will come at a cost.
Most of these technologies aren’t reliable and haven’t been universally approved. So companies may lose profit as they spend billions for technologies that may not even work.
Security Risks
Security risks have always been a challenge for the shipping industry, but today, they’re providing more issues to overcome. For example, pirates pose a bigger threat for shipping, especially since the number maritime piracy and armed robberies on ships in Southeast Asia and West Africa has increased.
Additionally, modern technologies could make ships more susceptible to cyberattacks. In a recent Reuters article, a NATO-accredited think tank said, “Increasingly, the maritime domain and energy sector has turned to technology to improve production, cost and reduce delivery schedules. These technological changes have opened the door to emerging threats and vulnerabilities as equipment has become more accessible to outside entities.”
Rising Costs
The rising costs of necessary materials could negatively affect industry competitiveness. The increasing prices may lead to higher costs of operation. Higher prices of fuel and parts as well as poor market conditions could cause serious issues in many global shipping companies. The Malaysian domestic shipping industry is already experiencing difficulties because of these higher costs.
These issues may appear as great challenges, but the shipping industry is resilient and is sure overcome these and future challenges that comes its way.
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