Container shipping got introduced as a blessing in the import-export business. From grocery items to any electronic device, even any hazardous cargo can be shipped through container shipping. Despite having more than 60 years of history, the container shipping industry has been facing an unprofitable phase for the last few years. The global financial crisis or supply-demand imbalance are some significant issues that companies cannot control mostly. But some internal faults are equally responsible for the loss of the container shipping companies. If they work on some aspects for the internal improvement, profit may increase from 10 to 20 per cent.

The present situation of the container shipping market

From the beginning of 2000 to 2005, both the charter rate and freight were high, and the container shipping industry was in a profit. But after the great recession of 2008, there was a major fall in this industry, and prices began to decrease. After 2010, the effects started to settle down, but prices were slow-paced.

When things were trying to get back to normal, 2020’s pandemic hit. During COVID-19, the whole container shipping industry was disrupted. Many shipments got delayed, the freight rate started increasing, and various restrictions on borders affected the shipping industry altogether. Based on the ACCC’s Container Stevedoring Monitoring Report 2020-21, key global trade routes, freight rates are presently about seven times higher than they were just a few years ago. Even though the rates are this high, shipping lines cannot guarantee timely delivery.

As of now, the pandemic has drawn to an end, and everything is back to normal. The situation in the container shipping industry is no different. However, after a modest 2.2% growth in 2024, maritime trade is expected to slow to just 0.5% in 2025, according to the Review of Maritime Transport 2025, published on 24 September by UN Trade and Development (UNCTAD). For shipping companies, it is high time to work on their internal gaps to overcome the effect of the past few unprofitable years.

Challenges faced in the container shipping industries

Conservative organisational mindset

Most shipping companies are conservative in their mindset. The culture is not very open to accepting new practices. The world is getting advanced with technology every day. If something is not invented there, then it does not exist in the company’s mindset, and it can never promote itself. So, it is one of the many internal challenges in some container shipping companies.

Problematic price setup

There is a problem often seen in the price setup policy from company to company. Many companies set the price at their marginal cost. It creates a problem for others to follow the price bar, as many of them have ineffective cost-management systems. Thus, not following a standard price-setting policy is another issue to consider.

Lack of innovation

Having no innovation and uniqueness among the companies is another huge challenge for this industry. Most of the companies offer almost the same services. There should be something different in features or offers to consider. Also, to set a healthy competition in the industry, it is necessary for the companies to add some value-added services to their list.

Lack of a skilled team

Your team can be your strength and also your weakness. When talking about the team, it includes junior employees in the office to senior managers and from Analytics to drivers. But many shipping companies do not understand the need for it. As a result, the companies sometimes do not hire analytics for them or sometimes do not work on upgrading the skills of the employees. It causes a hamper in operating the services smoothly.

Opportunities that still hold some hope for container shipping

1. Getting advanced with modern technology might help companies to get back in the market and run the procedures efficiently. Adding GPS-monitored container trucks, advancing the IT team or training the office staff with electronic logging devices can be some steps towards advancement.
2. Adding some unique and innovative features to the shipping company’s offerings is going to change the current scenario. For example, setting up an exact time frame and performing on-time delivery, after-hours services for customer convenience, and providing packing/unpacking and storage services based on the requirements might help the industry set the bar high for the clients
3. Adding analytics to the team can be a great opportunity to upgrade the company. An enthusiastic analytics team can not only help senior managers to understand the pricing but also to help get the corporate strategy.
4. Investment in advancing the team is a great need in this industry. Companies should hire professional staff and skilled drivers to manage the operation. Also, arranging training from time to time might help all employees to work on themselves.
5. Ensuring safety in this shipping industry is a crucial aspect to reflect on. As the pandemic is over and things are back to normal, no one wants any more losses in the business now. So, along with timely delivery, adding safety features can be a blessing in this market. For example, adding refrigerated transport with state-of-the-art active safety features can ensure the safety of frozen and delicate items.

These are some of the opportunities for a Melbourne-based container transport company to consider if they want to save themselves from the unprofitable chapter. Of course, there is a need for global economic stability and settlement of the rate volatility issue to improve the situation in the container shipping industry. But it is also true that if some of the above-mentioned internal improvements are made, the container shipping companies can return to their game. If the clients get up to the mark service, the positive outlook towards this industry might also come back. So, we can call these “the hidden opportunities” for container shipping.