Water Transportation Services

Water Transportation Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide inland, coastal, and deep sea transportation of freight and passengers. Major companies include Carnival and Kirby Inland Marine (both located in the US); as well as Mærsk (Denmark); COSCO (China); and Hapag-Lloyd (Germany).

COMPETITIVE LANDSCAPE

Demand for water freight transportation is driven by commodities trade and global imports and exports; demand for passenger transportation is driven by disposable income and travel preferences. The profitability of individual companies depends on efficient and safe operations. Large companies have advantages in capacity and diversity of service. Small companies can compete effectively by transporting specialized cargo or serving smaller markets. The US industry is highly concentrated: the 50 largest companies account for about 85% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major segments of the water transportation services industry include cruises (about 50% of US revenue), transportation of dry bulks (about 10%), and transportation of bulk liquids and gases (about 10%).