April 20, 2024
Global Shipbroking Market

Shipbroking Market is Anticipated to Witness High Growth Owing to Growing Shipping Trade Activities

Shipbroking is an intermediary that acts as a broker for vessels and cargo owners. It involves sale and purchase of ships, chartering of ships, and settling shipping claims on behalf of principals. Shipbroking services help shipping lines and cargo owners in ensuring on-time deliveries, safety of cargo and crew, and cost-effective transportation globally. The need for shipbroking arises due to the geographical dispersion of production and consumption centers internationally and growing requirements for bulk commodities such as oil, gas, grains and other raw materials.

The Global Shipbroking Market is estimated to be valued at US$ 289.53 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Global shipbroking market Demand are Doosan Heavy Industries & Construction,Toyota Turbine and Systems Inc.,Ballard Power Systems Inc.,Mitsubishi Electric Corp. ,Suzlon Energy Ltd.,Vestas Wind Systems A/S,Rolls-Royce Plc,Capstone Turbine Corp.,Sharp Corp.,General Electric. The major shipbroking houses focus on expanding their global presence through mergers and acquisitions to leverage local relationships and market expertise. For instance, in 2021, Arrow Shipbroking combined with OCEAN shipbroking and Global Maritime Group to form a new entity called Anglo-Eastern Unithai Shipbroking Co.

The shipbroking market offers opportunities in niche segments like wind farm installation and maintenance vessels. Growing offshore wind capacity additions across Europe and Asia provide prospects for special purpose tonnage requirements. Countries are also supporting development of domestic shipbroking capabilities to boost local shipping trade.

The shipbroking market is witnessing increased globalization. Shipbrokers are opening overseas offices to handle a diversifying fleet comprising different ship types. They are also investing in digitization and big data analytics to offer value-added services to shipping principals. This allows the capturing of larger market share in both traditional and emerging maritime trade lanes.

Market drivers and restrain

One of the major driver for the shipbroking market is growing shipping trade activities. International seaborne trade has been rising steadily, driven by trade in core bulks like iron ore and coal as well as containers. As intermediaries in the charter market, shipbrokers facilitate efficient vessel deployment to match cargo volumes. Increased shipping demand hence augments shipbroking requirements.

Another key driver is investments in LNG fleet and infrastructure. As nations switch to cleaner fuels, demand for seaborne LNG is rising rapidly. This is prompting oil majors and national oil companies to acquire new specialized vessels for LNG transportation under long-term charters. Shipbrokers play a significant role in fixing these large capital intensive gas ship deals.

One of the major restraint for the shipbroking market is fluctuation in commodity prices. Declines in prices of dry bulk commodities and crude oil impact trade volumes and curtail fresh vessel orders. This translates to lower chartering opportunities for shipbrokers in the medium term. Geopolitical risks in major cargo routes also act as a temporary dampener on shipping trade growth.

Segment Analysis
The shipbroking market can be segmented into dry cargo brokerage and tanker brokerage. Dry cargo brokerage is the dominating sub-segment currently as it accounts for over 60% of the market share. Dry cargo shipments involve transportation of commodities and products across various industries through vessels. Higher volumes of dry bulk commodities being traded globally is driving the dry cargo brokerage sub-segment.

Global Analysis
The Asia Pacific region is projected to be the fastest growing as well as most dominating region in the shipbroking market during the forecast period. This can be attributed to the strong growth of seaborne trade activities in countries of China, India and other Association of Southeast Asian Nations countries. The region accounts for over 50% of dry bulk cargo transportation globally. China alone handles over 30% of global dry cargo volumes. Increasing transportation of commodities to cater to the industrial and infrastructure development needs in Asia Pacific is propelling the growth of shipbroking market in the region. Europe currently holds the second position in terms of market share and is expected to witness steady growth owing to the recovery of shipments between Europe and major trading partners.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it