Marine Cargo Handling in Australia Industry Market Research Report now updated by IBISWorld
The Marine Cargo Handling industry in Australia has performed well considering the volatility experienced through the global downturn. The booming mining sector contributed to industry revenue growth as demand fell for other products and services, such as containerised freight. Industry revenue and profit fell as industry operators cut service prices to attract customers but lost volume all the same. Consumer sentiment also suffered with consumers purchasing less imported merchandise. Nonetheless, the mining sector and consumer sentiment recovered from 2010, which boosted demand for marine cargo handling. In the subsequent year, the industry benefitted as retailers, wholesalers and manufacturers restocked their inventories, increasing volume throughputs at Australian ports. For these reasons, industry research firm IBISWorld has updated its report on the Marine Cargo Handling industry in Australia.
Melbourne, Australia (PRWEB) June 17, 2012
The Marine Cargo Handling industry has performed well considering the volatility experienced through the global downturn. The booming mining sector contributed to industry revenue growth as demand fell for other products and services such as containerised freight. According to IBISWorld industry analyst Caroline Finch, “Industry revenue and profit fell as industry operators cut service prices to attract customers but lost volume all the same”. Consumer sentiment also suffered with consumers purchasing less imported merchandise. Nonetheless, the mining sector and consumer sentiment recovered from 2010, which boosted demand for marine cargo handling. In the subsequent year the industry benefitted as retailers, wholesalers and manufacturers restocked their inventories, increasing volume throughputs at Australian ports. IBISWorld estimates industry revenue will grow at an average rate of 3.3% per annum over the five years through 2011-12 to reach $1.68 billion.
IBISWorld estimates industry revenue will grow over the next five years through 2016-17. Australia's freight task is set to grow strongly as merchandise trade improves. Trends towards globalisation will coincide with lower barriers to international trade. The resulting increase in trade will heighten port activity and industry revenue. Handling shipping containers is more labour intensive than bulk materials and accounts for a greater share of industry revenue. The entrance of a new major player may also encourage revenue growth as the increased competition may lead to capital investment in extra capacity. “The entrance of a new player is likely to increase competition, lower prices, and improve service quality, which is good news for shippers”, Finch adds.
The Marine Cargo Handling industry has a high level of market share concentration. The industry has been dominated by a duopoly for the five years through 2011-12. DP World (owner of P&O Ports Australia operations) and Asciano dominate the industry and are responsible for most of industry revenue. However, beyond the two largest players in the industry, the market share of the remaining players is relatively small. The industry has some similar traits to the airline industry in the sense that it operates as a duopoly. Hutchison Port Holdings will enter the industry from 2013 and establish itself in the ports of Brisbane and Sydney over the next five years. Hutchison's entry will decrease the high market share currently enjoyed by DP World and Asciano.
For more information, visit IBISWorld’s Marine Cargo Handling report in Australia industry page.
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IBISWorld industry Report Key Topics
The Marine Cargo Handling industry provides the service of loading and unloading cargo from ships.
