January 2, 2025 — Source: Maritime Service Network
In 2024, the global shipping industry made significant progress in digitalization, green shipping, and safety systems. China, in particular, achieved key milestones across various maritime sectors. However, the year also saw frequent accidents and persistent geopolitical challenges. As the world transitioned to a low-carbon economy, interest in green energy soared. Let’s take a closer look at the key events that defined 2024 in the shipping industry.
1. China’s Shipbuilding Industry Shines Bright
China’s shipbuilding industry remained dominant in 2024. It secured 90% of the world’s shipbuilding orders. As a result, shipyards were overwhelmed with production schedules extending as far as 2030. The industry saw new players like Hengli Heavy Industries entering the market, while Meltur Shipbuilding made a strong return, contributing to technological advancements. China’s shipyards delivered a variety of vessels, reinforcing the country’s leadership position in global shipbuilding.
2. Qian Kai Port Opens New Belt and Road Opportunities
On January 14, 2024, China’s Qian Kai Port opened in Peru. This new port is a major part of the Belt and Road initiative and represents South America’s first smart port. It will drastically reduce shipping times between Peru and Asia. As a result, Qian Kai Port is poised to become a key hub for Latin America, enhancing its role as a gateway to the Pacific.
3. Shanghai Port Breaks the 50 Million TEU Milestone
In December 2024, Shanghai Port reached an extraordinary milestone by handling its 50 millionth TEU (twenty-foot equivalent unit) container. This achievement set a new global record. Shanghai now boasts nearly 350 international routes, covering over 700 ports in more than 200 countries. Its port connectivity has ranked first globally for 13 consecutive years, cementing its position as a leading international shipping hub.
4. Major Merger in the Chinese Shipbuilding Sector
A landmark merger took place in 2024 between China Shipbuilding and China Shipbuilding Heavy Industries. The merger, valued at over 110 billion yuan, made China Shipbuilding the surviving entity. This move solidifies China’s leadership in the global maritime industry and promises to streamline the country’s shipbuilding operations.
5. Shipping Companies Ramp Up Investment in Green Shipping
Environmental concerns continued to drive significant changes in the shipping industry. Many shipping companies turned their focus to green shipping, with LNG-powered vessels becoming more common. One-third of new shipbuilding orders were for LNG-fueled ships. Additionally, major players like Maersk launched their first methanol-powered container ships. To reduce carbon emissions, companies such as EPS, Maersk Cruises, and MOL also equipped vessels with wind-assisted propulsion systems.
6. AI Enhances Shipping Efficiency
The integration of Artificial Intelligence (AI) in the shipping sector gathered pace in 2024. On July 18, CMA CGM announced a partnership with Google to leverage AI and big data for enhanced logistics management. By December, HD Modern Shipbuilding equipped five vessels with AI-powered autonomous navigation systems, with plans for further expansion in 2025. AI has become a key player in optimizing shipping routes and improving operational efficiency.
7. MLC Convention Inspections Focus on Crew Wages
From September to November 2024, a joint inspection of ship crews’ wages and employment agreements took place. This was the second concentrated inspection of the Maritime Labour Convention (MLC) since 2014. It was conducted by the Paris MoU and Tokyo MoU organizations. The goal was to increase awareness of MLC compliance and ensure that shipping companies adhered to crew welfare standards.
8. Global Shipping Alliances Undergo Major Changes
The structure of global shipping alliances was significantly altered in 2024. On January 17, Maersk and Hapag-Lloyd formed a new container shipping alliance, set to begin operations in February 2025. Meanwhile, the 2M alliance, consisting of MSC and Maersk, is set to dissolve in January 2025. In September, HMM, ONE, and Yang Ming extended their partnership for five more years, forming the Premier Alliance, which MSC also joined.
9. Houthi Attacks Continue to Disrupt Global Shipping
Houthi attacks on vessels remained a major threat to global shipping in 2024. By October, 193 vessels from the US, Israel, and the UK had been targeted. In response, many ships chose to reroute around the Cape of Good Hope, leading to longer transit times and higher operating costs. Consequently, shipping rates surged due to these disruptions.
10. Frequent Bridge Collisions Raise Alarm
In 2024, there was a notable increase in bridge collisions, raising concerns about maritime safety. On February 22, a collision near Guangzhou led to the deaths of five people. A similar incident occurred in the US in March, where a bridge collapse resulted in fatalities. These accidents highlighted the need for stricter safety protocols in the shipping industry.
11. Trump’s Election Victory and Potential Trade Tensions
In November 2024, Donald Trump won the U.S. presidential election. He vowed to impose higher tariffs on Chinese imports, including a proposed 10% tariff. This potential trade escalation could have serious ramifications for global shipping and supply chains, as it may lead to increased costs and disrupted trade flows.
12. Global Port Strikes Disrupt Supply Chains
Labor disputes and strikes at ports worldwide caused significant disruptions in 2024. Major ports on the US East Coast and in Mexico faced strikes related to automation and labor agreements. Additionally, workers in France, Germany, India, and other countries also protested. These strikes underscored the vulnerability of global supply chains and the importance of resolving labor issues.
Conclusion
2024 was a transformative year for the shipping industry. It saw remarkable technological advancements, significant mergers, and a strong shift towards sustainability. However, geopolitical tensions, labor disputes, and safety concerns reminded the industry of the ongoing challenges it faces. As the global maritime sector moves forward, it will need to balance innovation with resilience to navigate the complexities of international trade.
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