The United States feeder container market is expected to account for more than 75% of North America's value share in 2024, growing at a 2.4% rate until 2034. The presence of a strong food and beverage sector in the country, as well as increased international trade activity for food and beverage items, are projected to encourage the adoption of feeder containers.
NEWARK, DE / ACCESSWIRE / August 22, 2024 / The global feeder container market is on track to achieve significant growth, with estimated sales projected to reach USD 11.3 billion by 2034. This expansion represents a steady rise from the estimated USD 7.8 billion in 2024, reflecting a CAGR of 3.7% over the forecast period from 2024 to 2034. The revenue generated by feeder containers in 2023 was USD 7.6 billion, with a forecasted year-over-year growth of 2.5% in 2024.
The market is witnessing a notable increase in the popularity of refer containers, which are expected to capture a 6.3% share of the market and account for nearly 30% of the value share through 2034. This growth is primarily driven by the rising demand for the transportation of perishable goods that require controlled temperature environments.
Increasing Ship Sizes Resulting in High Demand for Feeder Service Operators
Shipping companies are focusing on increasing their ship sizes. This helps bolster the market for feeder service operators as a rise in ship sizes will help in increasing the movement of containers since more containers in bulk will be loaded or unloaded in the vessel. Since 2000, the majority of the cargo has been carried using mega container ships, which have a capacity greater than 10,000 twenty-foot equivalent units (TEU).
Between 2011 and 2021, their carrying capacity proportion has increased from 6 per cent to almost 40 per cent. As per data available, in the last ten years, there have been around 97 new ships with a capacity of 15,000 - 19,990 TEU and around 74 ships with a capacity of 20,000 TEU and above. This rise in the capacity of container ships augments the need for more and more feeder service operators.
The development of new ports across GCC countries also propels the demand for feeder service operators. There are several seaports in the UAE. As per the World Shipping Council, out of the world's top 50 container ports, two are located in the UAE, and Dubai is featured among the list of top ten. Around 61 per cent of cargo destined for GCC countries arrives via UAE seaports. The increasing ship sizes and the development of seaports result in high demand for feeder service operators.
Feeder Operators Profiting From Connectivity of Small Ports
Global leaders across the shipping and logistics industry are focusing on identifying key small ports and terminals that do not have the facilities to berth the large-sized mother vessels but handle enormous amounts of cargo. For Instance, the Mediterranean Shipping Company provides full coverage from Turkey to the Middle East with a dedicated feeder network. Development of a new terminal at ASYA Port offering increased coverage of the Marmara region from the black sea with a large-sized feeder network of the company.
Moreover, the development of newer trade routes targeted by top shipping companies benefits the small ports of the developing and under-developed regions with international connectivity. On the other hand, the shipping companies can get extra containers with increased international trade from such non-major ports resulting in increased revenue. All the above mentioned factors eventually provide feeder operators in the across region with profitable growth opportunities for the upcoming years.
Full Report URL: https://www.futuremarketinsights.com/reports/feeder-containers-market
Key Takeaways from Global Feeder Container Market
Dry containers are leading in the feeder container market with more than 60% of the market share in the upcoming decade. Dry containers are standard containers used for transporting almost all types of standard goods or materials except liquids which is boosting its demand. Refer container is projected to reach almost 30% of value share by the end of forecast years driven by the transportation of perishable and temperature-sensitive products across regions.
Small-sized containers are mostly used across the global market witnessing a value share of almost 45% in the upcoming period. Small-size containers are suitable for emerging countries and transporting small amounts of different products. They are also the most affordable ones which will reduce the shipping cost. The high cube-size containers are gaining traction as they can carry more than 20,000 TEU.
The food and beverage industry is a prominent end user in the feeder container market which is capturing almost 25% of value share in the assessment period. The rising demand for food and beverage products is supplementing the demand for feeder containers, especially the referred ones. The need to maintain the safety and quality of consumable and perishable products is boosting its supplications in global trade.
North America captures around 20% of the market share in the forecast period. North America sales are prominently driven by its e-commerce growth, technological advancements, and efficient logistics and supply chain. Asia Pacific is an emerging region with a 5.9% growth rate in the upcoming decade driven by rapid growth in industrial production.
"The need for feeder container transportation is being driven by the rapid expansion of global trade and logistics. Feeder container services are more necessary as more commodities are transferred across borders since they offer an affordable way to move goods over shorter distances."- Says a Lead Consultant Ismail Sutaria in Packaging at Future Market Insights (FMI).
Alliances and Strategic Planning Across Shipping Industry Ensure Growth of Feeder Service Operator Market
Most of the biggest shipping companies are looking to enter into strategic partnerships or are looking to ally with small shipping companies, service providers, operators, or terminal operators. This trend of forming alliances and partnerships will benefit feeder service operators as large companies have access to various capacities and have a large client base, which results in high seaborne trade.
Around top 15 shipping lines account for around 70% of the overall fleet capacity. This share has increased after the companies have started entering into mergers partnerships and alliances. After the formulation of the alliance, the members of the alliance get access to various benefits such as low freight rate levels, strengthened bargaining power, etc. This ensures the growth of the feeder service operator market.
The trend of alliances and strategic planning can reinforce the power of bargaining. This has benefited the feeder service operators who are a member of these formed alliances.
Global Feeder Container Market Landscape
To enhance sales, leading businesses in the worldwide feeder containers market are looking to expand their global presence, diversify their product offering, and speed their development processes.
Using technology, these businesses focus safety, product quality, and customer pleasure in order to grow their consumer base. They are pursuing a merger and acquisition strategy to increase company resources and producing new items to fulfill customer demands.
Key Players of Feeder Container Industry
Evergreen Marine Corp
Star Feeders LLC
Saraf Shipping Agency
Global Feeders Shipping
Bahri
Holland Container Innovations B.V.
Hapag-Lloyd AG
Mediterranean Shipping Company
A.P. Moller-Maersk
Staxxon
Orient Overseas Container Line Limited
SAFEEN Feeders (Abu Dhabi Ports)
FeederTech (Unifeeder Group)
CMA CGM Group
PIL (UAE) LLC
COSCO SHIPPING Lines
Global Feeder Container Market Report
Future Market Insights, in its new report, offers an unbiased analysis of the global market for feeder container, analysing historical demand from 2019-2023 and forecast statistics for 2024-2034.
The study reveals market growth projections based product type (dry containers, reefer containers, and others), container size (small size containers, medium size containers, and high cube size containers), and end use (oil & gas, food & beverages, automotive healthcare and allied industries, electrical and electronics, and other industries), across seven regions.
Key Segments of Feeder Container Industry
By Product Type:
In terms of product type, the industry is segregated into dry containers, reefer containers, and others.
By Container Size:
In terms of container size, the industry is segregated into small size containers, medium size containers, and high cube size containers.
By End Use:
The industry is classified by end use as oil & gas, food & beverages, automotive healthcare and allied industries, electrical and electronics, and other industries.
By Region:
Key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia & Pacific, East Asia, and Middle East and Africa (MEA), have been covered in the report.
Authored by:
Ismail Sutaria (Lead Consultant, Packaging and Materials) has over 8 years of experience in market research and consulting in the packaging & materials industry. Ismail's strength lies in identifying key challenges faced by the client and offering logical and actionable insights to equip the clients with strategic decision-making power.
Ismail has been an instrumental part of several transformational consulting assignments. His key skills include competitive benchmarking, opportunity assessment, macroeconomic analysis, and business transformation advisory. Ismail is an MBA holder in Marketing and has a Bachelor's Degree in Mathematics.
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