LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global shipbroking market to post a CAGR of almost 3% during the period 2018-2022, according to their latest report. However, the growth momentum of the market is expected to decelerate due to a decrease in the year-over-year growth.
The implementation of advanced technologies is one of the major trends being witnessed in the market. The increase in innovations and technological advances such as artificial intelligence (AI), machine learning (ML), blockchain, advanced analytics, Big Data, Internet of Things (IoT), virtual assistants, automated vehicles, and augmented reality (AR) and virtual reality (VR) are expected to pave the way for the adoption of progressive business solutions around the world. With the increasing investments in R&D, technological advances are proliferating faster than ever across the maritime sector. Modern ships are becoming smarter as they are being connected to smart systems such as advanced sensor systems, drones, satellites, and other robotic devices. Ships are incorporating analytics solutions, which allow them to derive useful insights and allow smart decision-making.
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In this report, Technavio analysts highlight the demand for key value addition in the shipping process as a key factor contributing to the growth of the global shipbroking market:
Demand for key value addition in the shipping process
Shipbrokers have three key and immutable functions. These functions include expertise on the current demand and supply, knowledge of the freight market, and resolving professional disputes between the shipowner and charterer. One of the key drivers of the global shipbroking market is the rising awareness and realization of the extent of value addition that shipbrokers provide to the entire maritime sector. With their specialized market experience and extensive base of contacts, these brokers are an asset for the shipowner as well as the charterer.
A shipbroker acts as an intermediary between a shipowner and a charterer. A broker essentially deals with all the intricate details of the entire transaction between both the parties. The shipbroker draws up the contractual agreement for the use of a ship by the charterer and highlights the terms and prices that are agreed upon by the parties involved. The maritime sector is regulation-intensive, and shipbrokers are required to handle the legal aspect of the transaction.
According to a senior research analyst at Technavio, “One of the key functions of shipbrokers in the maritime sector is to act as an advisor on risk management to the charterer. The shipping business is ridden with a lot of risks such as hull risk, fire risks, liability risks, as well as other third-party risks. A storm at sea or the presence of pirates in the open ocean can be harmful to the cargo. Cargo can get damaged or lost. Thus, the broker is entrusted with the role of identifying the risks and making recommendations to eliminate or mitigate these risks.”
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Global shipbroking market segmentation
This market research report segments the global shipbroking market into the following applications (bulker and tanker) and key regions (the Americas, APAC, and EMEA). It provides an in-depth analysis of the prominent factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.
Of the two major applications, the bulker segment held the largest market share in 2017, accounting for nearly 35% of the market. This segment is expected to grow steadily and dominate the global market throughout the forecast period.
EMEA was the leading region for the global shipbroking market in 2017, accounting for a market share of more than 68%. It was followed by APAC and the Americas respectively. EMEA is anticipated to dominate the market throughout the forecast period.
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