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The Rationale Behind The Entry Of GE Shipping Into The Container Market

GE Shipping might potentially explore new growth opportunities and mitigate risks related to decreased demand in its current areas by diversifying into container shipping.
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GE Shipping may be assessing the container shipping industry in part because of the potential to establish a niche in a field with little Indian competition. With a small fleet of just two ships, the state-run Shipping Corporation of India Ltd (SCI) is now the only Indian carrier involved in the mainline container shipping trade.

The need to reduce risks related to the world’s transition to green energy, which could influence the demand for crude oil and petroleum products transported by sea, is probably what motivates this idea. GE Shipping might potentially explore new growth opportunities and mitigate risks related to decreased demand in its current areas by diversifying into container shipping.

According to company officials, the container shipping industry is now profiting from higher freight rates because of global crises, such as the ongoing tensions in the Red Sea. However, they are hesitant to become involved right away because of the possibility of changes in the industry’s profitability.

India’s exporters, especially those in the containerized sector, have long demanded the establishment of a national container carrier to lessen their need on international shipping conglomerates such as Maersk, CMA CGM, and MSC. Due to rising shipping prices, a lack of available containers, and supply chain interruptions, exporters are facing severe financial hardship as a result of the pandemic-related increase in freight rates. These difficulties have been made worse by the Red Sea issue.


One of the container markets with the quickest rate of growth is the intra-Asia trade route, which is being propelled by the growth of e-commerce and the deeper economic integration of Asian economies. The Indian government has been aggressively encouraging the development of coastal trade routes, which presents another possible opportunity in the field of coastal shipping.

Although GE Shipping is still in the evaluation phase, its possible entry into the container shipping industry is a huge strategic move that has the potential to completely change the company’s destiny. This calculated risk might increase its market share and spur significant expansion, solidifying its place as a major player in the developing maritime sector.

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