by Shipbroking refers to the business of arranging cargo space or ship vessel for clients by acting as a broker between the carriers and cargo owners. Shipbroking involves services like chartering, sale and purchase of ships, arranging ship finance, as well as accident and salvage settlements. Shipbrokers act as an important intermediary in the global shipping industry, helping ship owners, charterers, traders and other stakeholders transport bulk cargoes like petroleum products, dry bulk, containerized and roll-on/roll-off cargo across oceans. With increasing globalization and expansion of international trade, the demand for marine cargo transportation has risen significantly over the years. The growing volumes of international seaborne trade in energy products, dry bulk and containerized goods have boosted the ship chartering activities, thereby driving the shipbroking market.
The global shipbroking market 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 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing marine cargo transportation is one of the key drivers propelling the shipbroking market. As international trade volumes continue to increase on the back of economic growth, thriving globalization and rising consumption levels across emerging nations, marine ships will play a bigger role in transporting cargoes across oceans. This will fuel the demand for ship chartering and other shipbroking services. Moreover, a large global merchant fleet is required to facilitate the growing seaborne trade flows. As of 2020, over 80% of globally traded goods are carried by ship. Shipbrokers help mobilize this large global fleet of cargoes between traders and ship owners. Growing marine trade volumes thus increases dependence on shipbroking intermediaries to arrange ships for cargo transportation.
Another driver for the market is consolidation of shipbroking houses. Large shipbroking companies are acquiring smaller rivals to gain more scale and global footprint. For instance, in 2020, shipbroking major Braemar acquired smaller competitor Jacq. Maritime consolidation allows broking firms to offer more comprehensive services and reach out to a wider client pool across major ports world over. This fosters their revenue growth and market position.
Segment Analysis
The global Shipbroking Market Size is segmented into the type of vessels like dry cargo, tankers, LNG, containers, offshore. The dry cargo segment holds the dominant share in the global market. Dry cargo ships are used to transport bulk cargoes like grains, coal, ores, and fertilizers. Various commodities that are essential for industries and economies are transported through dry cargo ships. This substantial demand for dry cargo transportation makes it the dominating sub-segment in the shipbroking market.
PEST Analysis
Political: Favorable government initiatives like investments in ports and waterways promote the shipbroking industry. Stringent regulations on safety and emissions impact the operations of market players.
Economic: Rise in international trade drives the demand for shipping. Fluctuations in commodity prices and global economic growth influence freight rates and market revenues.
Social: Advancements in cargo handling technologies improve efficiency. Growing concern for environmental protection increases the use of cleaner fuel ships.
Technological: Adoption of digital solutions and AI aids remote ship management. Automation and use of robotics enhances onboard safety and cargo handling.
Key Takeaways
The global shipbroking market is expected to witness high growth over the forecast period.
Asia Pacific currently dominates the market due to the substantial presence of ship owners and operators in China, Japan, and South Korea. Large trade volumes within the region and with European and American countries have boosted shipping activities in Asia Pacific.
The 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., and General Electric. These companies have established global presence and offer comprehensive services including sale and purchase, chartering, consultancy etc. Continuous investments in advanced technologies have enabled players to improve service quality.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
