Finis Toomer Celebrates Positive Trends in Global Shipping Industry

According to Finis Toomer--Director of Business Development at freight shipping service provider GlobalTranz Logistics--the ebb and flow of cargo trends are a strong indicator of commercial progress. While many in the global shipping industry have recognized a decline in global shipping since 2008, new reports suggest that recent cargo ship orders may hint toward the positive growth to come. As the orders for cargo ships increase--particularly in relation to freight transit between the US and China--Toomer anticipates that the shipping industry and the national economy are likely to improve.
A recent article from The Gulf-Times reveals critical information on the topic and explains, "A recent surge in new orders for some of the world's biggest cargo ships has provided a glimmer of hope for the beleaguered global shipping market, which has been plagued by excess capacity and [lackluster] trade. This week, China Shipping Container Lines signed a $683M deal for five new container ships. When completed, the ships will be the largest of their kind afloat, with a capacity to carry 18,400 standard container boxes. The agreement follows recent orders made by China Shipping's sister company for six natural gas carrying ships for $1.51B, as well as US-based [ship owner] Seaspan Corp's plans to buy as many as 14 megacontainer ships from Chinese and Korean shipyards."
While the article notes that this development presents a great opportunity for parties to buy in at low rates, Finis Toomer notes that the trends may indicate positive patterns outside of the cargo industry as well. Toomer states, "The increase of orders submitted for cargo ships is a good indicator that the global economy is on the rise. Ocean carriers are not going to spend this kind of money without having information to support their belief that there will be an increase in the products being transported via ocean vessels during the next 24 to 48 months."
Following a similar sentiment as Finis Toomer, The Gulf-Times reports, "Freight rates for many trade routes, especially between Asia and Europe, have stayed below levels where shippers could operate profitably, exacerbated by new capacity being dumped onto the market from existing orders with China's many shipyards, which produced five times as much tonnage in 2012 than they did in 2005. Shipping giant AP Moller-Maersk estimated earlier that container shipping capacity will grow 11 percent this year, outpacing the rise in demand."
Although it is anticipated that these growth rates are expected to impact many aspects of the international economy, Finis Toomer also observes how these trends could influence the US economy. "This growth should also tend to support those who believe our national economy is on its way up. I can only hope that this will mean an increase in jobs here in the US, as well as an increase in domestic products being exported," Finis Toomer concludes.
Source: Finis Toomer