A report released by Reportlinker has found that the cargo shipping transport market is projected to grow at a compound annual growth rate of 3.50% from 2016 to 2021.
The market growth is majorly attributed to growth in container transportation within growing, developing and developed economies.
The Middle Eastern and African region has the highest growth potential in the next five years and the developing economies in Africa and oil exports by the Middle Eastern countries are the key contributor's in regional trade growth.
Although the oil exports have stalled due to the fall in international oil prices the region has seen significant growth in container shipping.
Few Middle Eastern countries like Saudi Arabia are focusing on being independent of oil trade and African countries are poised for unprecedented growth in the coming year which will drive the growth of cargo shipping industry.
Increasing number of countries formulating free trade agreements are also expected to boost the cargo shipping industry.
The different free trade agreements such as the NAFTA, AFTA, TPSEP, and others have helped countries significantly towards strengthening their economies.
The study also contains insights from various industry experts, ranging from shipping companies to freight forwarders and trading companies.
PTI previously reported that container rates in the shipping industry are set to soar in the next 18 months, however, this is not expected to be able to rescue the industry form tough market conditions.