Identifying the Underlying Factors Causing the Changes in the European Container Shipping Market in the Post-COVID-19 Era

Abstract: The COVID-19 pandemic has disrupted global supply chains and container shipping markets in several ways, leading to changes in demand, supply, and price. Therefore, identifying and understanding the underlying factors that have contributed to these changes is crucial for stakeholders in the industry and policymakers seeking to mitigate the negative effects of the pandemic on global trade, particularly in Europe. This study has employed a mixed research approach, including a literature review, an empirical survey, and expert interviews, and utilized an exploratory factor analysis (EFA) to identify the key factors affecting the market. The study has found three underlying factors - supply chain disruption, changes in freight capacity and consolidation, and supply chain transformation – which have had a moderate-to-high impact on the demand and supply of container shipping markets. Supply chain transformation had the highest impact on demand, while supply chain disruption had the highest impact on supply and price. Changes in freight capacity and consolidation had a lower impact on demand, supply, and price. To overcome the challenges faced by the container shipping industry in Europe after the COVID-19 pandemic, companies can improve supply chain resilience, engage in collaborative planning and forecasting, implement advanced technologies like AI, and adopt sustainable supply chain practices. These solutions can mitigate supply chain disruptions, respond to changes in the market, improve operational efficiencies, reduce costs, and maintain social and environmental responsibilities.