The Future of Shipping Industry Article Example | Topics and Well Written Essays - 500 words

The Future of Shipping Industry - Article Example The decline in the overall demand from developed countries such as US and UK is forcing many developing and emerging countries to look for local demand, and as such, there is very little demand being generated internationally as suppliers from countries like China is finding it difficult to sell their products in international market. (Wade). Until most recently, the industry was facing an uphill task of meeting the expenses because of increase in oil prices. Due to the lack of fuel efficiency, many shipping companies found it difficult to manage their costs as the consistent increase in oil prices was seen as one of the greatest threats to the short-term viability of the industry. (Vidal). Considering this fundamental challenge, environment specialists like Vidal conclude that the future of shipping industry would largely depend upon how the industry adapts to the biofuel technology as the industry does not only have to withstand increasing costs but also have to face the increasing criticism for its involvement in polluting environment. It has also been argued that the ship designing is largely based on existing regulations which need to be fulfilled before a ship can be rolled over for the commercial purpose. Due to complacent nature of such regulations, it is often felt that the chip makers, as well as shipping industry, have to face the wrath of industry dynamics which are not allowing them to be more competitive. As such the future of shipping industry is largely based on the changes to be made into the relevant regulations in order to make it more competitive and sustainable. It is also important to note that due to increased awareness of the consumers and emergence of so-called â€Å"ethical consumers† demands that the supply chain of the international organizations shall be ethical in its orientation. However, the absence of any such concepts in other parts of the world may not lead to the development of community shipping and as such due to a diversity of the suppliers and buyers; shipping industry may not make a transition to community shipping until regional economic clusters are developed.