JLL’s 2017 PAGI Seaport report includes the top five trends. As the global shipping industry continues to shift through bankruptcies, mergers and alliances, competition between ports is heating up. The completion of the Panama Canal expansion opened up new opportunities for East Coast ports.
New Jersey’s market conditions:
- Over the past year, rents increased at a dramatic rate, as vacancy fell to new cycle lows. Demand for industrial space remained iron-clad as users looked for space near both the port and the population base of the New York metro area.
- Displacement from demolitions continues to elevate demand for space in an already tight market.
- Trade wars: Gulf Coast on the winners list
The decline in oil prices has had a “reverse” effect on the downstream sector, feuling a boom in the petrochemical sector. In recent years, the refining and processing of oil and gas into chemicals, plastics and other products has helped increase bulk and containerized port volumes and industrial real estate demand along the Gulf Coast.
2. Mergers and alliances lead to uncertainty and a changing landscape in the shipping industry
As of April 1, 2017, the industry shifted, moving from our shipping alliances to three leading alliances. Combined, these alliances have affected approximately 90.0 percent of the global trade routes.
3. Ships ahoy! Larger ships calling on U.S. ports, passing through the new Panama Canal
The ocean freight industry has undergone multiple changes and transitions in 2016 and into 2017. Ocean carriers have been planning on keeping fewer ships in the water by progressing to a fleet of larger ships instead.
4. Next-day deliveries and autonomous vehicles to take trucking industry to new heights
Urbanization keeps driving e-commerce-and U.S. dependence on trucking to meet these needs is critical. In the current technologically advanced and competitive world, the trucking industry is seeing a shift to utilizing technology to make the freight brokerage, movement and tracking of cargo ever-more efficient.
5. Rail needs to be nimble as competition from other transportation modes intensifies
The rail industry is expected to grow and revenues to rise. Because rail is seen as a less expensive and more environmentally sustainable alternative to trucking, shippers look to rail to carry large amounts of cargo quickly. Owing to the large cargo volumes entering the United States via mega-ships, rail infrastructure must be able to operate efficiently, keeping profit margins up. To meet this expected increase in demand from the mega-ships, ports continue to invest in infrastructure improvements.
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