we took a rather in-depth look at the falling price of oil and its effect on the logistics industry. While the rail companies don’t rely predominantly on oil, it does make up a big portion of their revenue through fuel surcharges. With little surcharges to draw on, many rail companies are looking at a grim year. The trucking industry is faring better, as low fuel prices drop operating costs and allow them to rework their operations to better suit their customers. Oceanic freight, on the other hand, still has a long way to go before they even out. Weak demand and overcapacity plaguing the ocean carriers, causing them to either bailout, consolidate, or both.

1. Oil Prices And The Effect On
Freight Rates (Part 2)

2. Join The Conversation
On Twitter
@XENETA_AS

3. About
Xeneta
Container Freight Pricing
Transparency With One Platform In
Real Time & On Demand.

4. Are You Paying The
Right Container Freight
Rates?
Discover Savings
Potential In Real
Time.
Contact Us.

5. An In-depth Look At The Falling
Price Of Oil And Its Effect On
The Logistics Industry.
See Part One

6. Lower Forecast For Global
Economic Growth

7. Don’t relypredominantly
on oil, but it does make
up a big portion of their
revenue through fuel
urcharges.
With little surcharges to
draw on, many rail
companies are looking
at a grim year.
Faring better, as low
fuel prices drop
operating costs and
allow them to rework
their operations to
better suit their
customers.
Still has a long way
to go before they
even out. Weak
demand and
overcapacity
plaguing the ocean
carriers, causing
them to either
bailout, consolidate,
or both.
Rail Companies Trucking Industry Oceanic Freight

8. The international
monetary fund has
recently lowered its
forecast for global
economic growth this year
down to 3.4%, and only
3.6% for 2017.

9. That would translate to
approximately 4% container
growth for the year, roughly half of
the capacity growth for this year.
- Peter Sand, The Chief Shipping Analyst At Bimco

10. This, however, is not a new
trend as shipping has
been dwindling since
2000-2008 when the
gdp-to-trade multiplier
was at 2.2, double its
current standing.

11. How It Will Affect The
Shipping Industry

12. Last year saw 1.67 million teus of capacity being added to the
global fleet, increasing its size by a tremendous 8.1%.
In 2016, growth should slow to 850,000 TEUS, comprised
mostly of the overly abundant 8,000-plus teu category as the
trend favoring bigger ships continues. (source: BIMCO)
While this marks a record low for fleet growth, it still isn’t even
close to being enough to offset the weak growth of cargo
demand.

13. Prospect Of European
Growth

14. Private consumption in europe has been steady over
the past year so eventually demand should come
back. At what level and what time remains
uncertain. What
remains certain is the sooner, the better.
- Peter Sand, The Chief Shipping Analyst At Bimco

15. With the prospect of European
growth continuing combined with
the U.S. Economy maintaining
steady improvement, the hope
remains that consumer demand
will continue to grow and
equilibrium will stabilize the freight
and logistics sector as a whole
once again.

16. Learn How Xeneta Can Help
You Get Insight And Intelligence Into
Your Global Ocean Freight Prices And
Change Your Logistics Business:
Request
Demo Now