DFDS - Competitors

DFDS Competition

Now Viewing DFDS's competition in: Deep Sea Shipping (primary)

Recent Developments

Credit Crunch Helps Shippers - Tight credit markets are making new ships more difficult to finance, which is creating problems for shipyards. The resulting capacity shortage has demand outstripping supply by a wide margin, driving shipping costs higher. Shipping capacity and freight prices are likely to remain at current levels until credit for new ships becomes more available.

Skyrocketing Shipping Costs Threaten Globalization - The rapid increase in shipping costs, driven by high fuel prices, is outstripping tariffs as the chief hurdle for free trade, according to Canadian investment bank CIBC World Markets. High fuel prices may also counteract corporate strategies of moving production to low-wage regions. If oil prices continue to rise, some low-cost production supplying the North American market could move from China to Mexico.

US Imports/Exports Increase - Both US imports and exports rose in the first three months of 2008 compared to the same period a year earlier. Overall exports rose more than 17 percent, with the greatest increases in countries with rapidly growing economies such as India, with nearly a 50 percent increase; China, more than 25 percent; and Brazil, more than 23 percent. Overall US imports increased 11.5 percent. The greatest import growth came from oil-producing nations including Saudi Arabia, up 96 percent; and Nigeria and Venezuela, each up more than 50 percent.

Competitive Landscape

Demand is driven by macroeconomic trends in global imports and exports. The profitability of individual companies depends on efficient operations and a good safety record. Large companies have advantages in fleet size and port access. Small companies can compete effectively by chartering services out of smaller ports and transporting unusual cargo. Average annual revenue per worker for a typical company is nearly $500,000.

Full Industry Overview For Deep Sea Shipping

Deep Sea Shipping Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US water transportation, which includes deep sea shipping, is forecast to grow at an annual compounded rate of 5.5 percent between 2007 and 2012.

Water Transportation Services Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.