Inland Water Freight Transport Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 14.5 Billion |
| Market Size (2029) | USD 17.29 Billion |
| CAGR (2024 - 2029) | > 3.73 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Inland Water Freight Transport Market Analysis
The Inland Water Freight Transport Market size is estimated at USD 14.5 billion in 2024, and is expected to reach USD 17.29 billion by 2029, growing at a CAGR of greater than 3.73% during the forecast period (2024-2029).
- The inland water freight transport market is on the cusp of significant growth, driven by the escalating demand for bulk goods transportation. Inland water transport, well-suited for handling large volumes, is gaining traction as companies seek more economical and eco-friendly shipping solutions. Bulk transportation involves moving large quantities of goods or materials, making inland water freight an ideal choice for industries requiring substantial volume handling.
- Water freight is often lauded for its affordability, especially for heavy items. It calculates its rates based on the cubic meter of a standard container. This contrasts with air transport, where the charged weight considers cargo size and weight. The cost-effectiveness of water freight stems from the lower fare pricing compared to other shipping methods, making it a preferred option for transporting heavy and bulky items.
- One notable trend in the inland water freight market is the rise of IT platforms for streamlined vessel management. These platforms cover a range of functions, from customer and warehouse management to fuel optimization and performance monitoring. Information technology is utilized on ships for various purposes, including customer relationship management, queuing systems, and document recognition from scanned copies and images, enhancing overall operational efficiency.
- Highlighting the industry's shift toward sustainability, in May 2023, Future Proof Shipping (FPS) unveiled the H2 Barge 1, the world's first hydrogen-powered inland container ship, in Rotterdam, the Netherlands. This zero-emission vessel represents a significant step toward greener shipping solutions, addressing the growing environmental concerns within the industry.
- The Suez Canal, a vital trade route, saw a significant dip in trade volume, down by 42% over two months, according to UNCTAD estimates. This decline, coupled with disruptions in oil and grain trades due to the conflict in Ukraine, has reshaped global trade patterns. The Suez Canal, connecting the Mediterranean Sea to the Red Sea, handled approximately 12% to 15% of global trade in 2023, underscoring its critical role in international commerce.
- Notably, grain shipments in 2023 traveled longer distances than ever before. Despite Ukraine resuming grain exports in 2022, several importing nations, influenced by the Black Sea Initiative, diversified their sources. This shift in trade routes highlights the adaptability of the global supply chain in response to geopolitical events.
- The World Bank emphasizes the economic benefits. In India, waterways offer a more cost-effective cargo transport than road and rail. This affordability, especially for heavier cargo, is a key driver for the inland water freight market. Waterways in India provide a lower-cost alternative for transporting goods, contributing to the overall efficiency of the supply chain.
- Also, the industry is witnessing a surge in technological adoption. For instance, Gazonor Béthune, a La Française de l'Energie subsidiary, introduced 'La Bethune,' the world's first hydrogen-fuel cell-powered river barge. With a 200 kW fuel cell system, it aims to slash carbon emissions by up to 40% compared to traditional diesel-powered barges. This innovation reflects the industry's commitment to reducing its environmental footprint through advanced technology.
Inland Water Freight Transport Market Trends
The Demand for Transporting Goods in Large Quantities is Increasing
Increased iron ore shipments from Brazil and rising inventories in China have significantly boosted capesize freight rates. Shifting trade routes away from the Red Sea and Panama Canal has further heightened demand in smaller vessel segments, as these routes become less congested and more efficient for certain types of cargo.
Projections suggest a 2-3% increase in grain shipments in 2024, with estimates ranging from 0.5 to 1.5% in 2025. Specifically, maize shipments are expected to rebound in 2022, driven by favorable weather conditions and improved agricultural practices. Meanwhile, soybean shipments are poised to hit record highs due to increased global demand and expanded cultivation areas.
Industries like agriculture and energy heavily rely on bulk transportation for their day-to-day operations and to sustain growth. Agriculture, for example, depends on bulk transport to move crops, livestock feed, and other goods from farms to processing and distribution hubs. This ensures that produce reaches markets promptly, maintaining supply chain efficiency. Similarly, energy uses bulk transportation to move crucial resources like crude oil, natural gas, and coal, which are essential for electricity generation, heating, and fuel production. Efficient bulk transport helps stabilize energy supplies and manage costs.
Despite challenges such as high interest rates and inflation, the global economy's demand for dry cargo has shown resilience. In 2023, it grew by over 5%, mainly driven by key commodities such as iron ore, coal, and grains, which are fundamental to various industrial processes and consumer needs.
Iron ore, a dominant force in the dry bulk market, continues to see strong demand due to its critical role in steel production, which underpins construction and manufacturing industries worldwide. Surprisingly, coal, the market's second-largest commodity, has not only held its ground but also defied expectations of a decline amidst the global energy transition as certain regions continue to rely on coal for energy security.
Additionally, there is a rising appetite for grains, particularly soybeans and other 'minor bulk' commodities. In 2023, soybean demand surged by over 10%, buoyed by a growing global population and changing dietary preferences favoring protein-rich foods and plant-based diets.
Asia-Pacific is the Fastest Growing Market for Inland Water Freight Transport
As a result of an increase in the demand for practical and cost-effective inland waterway transport, it is projected that by 2032, there will be remarkable growth in the inland waterway vessel market from freight vessels. It is essential for the logistics, agriculture, and manufacturing sectors that freight ships can transport a wide range of cargo, including containerships and freighters.
Shortly, electric ships, boats, and barges will be able to navigate much of China's vast inland waterway network. To reduce emissions from inland waterway transport, a growing number of regions along the country's major rivers and coasts have stepped up support for electric ships, with more than 100,000 passenger and freight vessels operating within the country.
From FY22 to FY23, Indian inland waterway traffic increased by at least 16% year-over-year to 126.15 million tonnes, compared to 108.79 million tonnes in the previous year. Some five-odd waterways were functioning in three states, namely Assam, Odia, and Kerala. The Ministry has also sanctioned over INR 6,600 crore (USD 79.65 million) for infra development across the national waterways, including developing five new ones. India has 111 national waterways (NW), including five existing ones and 106 newly declared ones spread across 24 states.
India wants to expand its ambition to connect rivers throughout Southeast Asia to Thailand to interconnect local river channels and boost trade. Shippers, logistics players, and cargo owners should benefit from the planned international waterways network, which will span over 5,000 km and pass through eight nations.
Moreover, market growth is driven by regional governments investing in infrastructure development and the modernization of inland waterway transport networks. These factors contribute to the development of the Asia-Pacific market as a whole. In addition, as part of its efforts towards reducing emissions and promoting eco-friendly shipping solutions, COSCO Shipping Development, a subsidiary of COSCO Shipping Corporation, launched an electric cargo ship in July 2023.
Inland Water Freight Transport Industry Overview
The inland water freight transport market is highly concentrated due to the high demand for agricultural exports, oil refining, coal consumption, and chemical imports. Large companies have advantages in handling a broad range of cargo types and economies of scale in purchasing and marketing. Small companies compete based on their specialization in cargo types or services, subcontracting with larger undertakings and offering responsive customer service. Some players include American Commercial Barge Line, Ingram Barge, Kirby Inland Marine, American River Transportation, and CMA CGM Group.
Inland Water Freight Transport Market Leaders
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American Commercial Barge Line
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Ingram Barge
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Kirby Inland Marine
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American River Transportation
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CMA CGM Group
*Disclaimer: Major Players sorted in no particular order
Inland Water Freight Transport Market News
- February 2024: Shri Sarbananda Sonowal launched significant projects for the development of waterways, unveiled projects worth INR 308 crore (USD 37.17 million) for Northeast India, and inaugurated Passenger-cum-Cargo Terminal at Bogibeel near Dibrugarh, Inland Water Transport Terminal at Sonamura in Tripura and upgraded terminals at Karimganj and Badarpur in Assam.
- November 2023: Amazon became the first e-commerce company to work with the Inland Waterways Authority of India to facilitate cargo shipments on Indian waters. A pilot route will be launched between Patna and Kolkata. The aim is to establish a network for cargo shipment on inland waterways. A pilot will soon be initiated on the water route between Patna and Kolkata with the support of IWAI and its carriers.
- September 2023: Maersk launched the world's first container ship on bio-methanol, a renewable and sustainable fuel source. This initiative represents a significant step toward reducing the shipping industry's carbon emissions and environmental impact.
Inland Water Freight Transport Market Report - Table of Contents
1. INTRODUCTION
1.1 Market Definition and Scope
1.2 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 The Need for Reasonable Cargo Transportation
4.2.1.2 Increasing Industrial Production Index
4.2.2 Restraints
4.2.2.1 Volatility in the Crude Oil Price
4.2.2.2 Infrastructure Limitations And Insufficient Investment
4.2.3 Opportunities
4.2.3.1 Lean and Green Inland Transportation
4.2.3.2 The Development of Information Technology Platforms for Better Vessel Management
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Value Chain/Supply Chain Analysis
4.5 Technological Advancements
4.6 Government Regulations and Key Initiatives
4.7 Insights into Transshipment Trade
4.8 Insights into Containerized and Non-containerized Shipments
4.9 Freight Rates and Maritime Transport Costs
4.10 Insights into Intermodal/Container Utilization
4.11 Demand-Supply Analysis
4.12 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Type of Transportation
5.1.1 Liquid Bulk Transportation
5.1.2 Dry Bulk Transportation
5.2 Vessel Type
5.2.1 Cargo Ships
5.2.2 Container Ships
5.2.3 Tankers
5.2.4 Other Vessel Types
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 Netherlands
5.3.2.3 Belgium
5.3.2.4 France
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Japan
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of Latin America
5.3.5 Middle East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 American Commercial Barge Line
6.2.2 Ingram Barge
6.2.3 Kirby Inland Marine
6.2.4 American River Transportation
6.2.5 CMA CGM Group
6.2.6 McKeil Marine Limited
6.2.7 AP Moller - Maersk A/S
6.2.8 Rhenus Group
6.2.9 Imperial Logistics International
6.2.10 Safewater Lines*
- *List Not Exhaustive
6.3 Other Companies
7. FUTURE OF INLAND WATER FREIGHT TRANSPORT MARKET
8. APPENDIX
Inland Water Freight Transport Industry Segmentation
Any transportation of goods made with inland waterways vessels and completed entirely or in part on navigable interior waterways is referred to as inland water freight transport. Inland waterways transport refers to the transportation of goods made entirely on navigable inland rivers employing seagoing vessels.
A complete background analysis of the inland water freight transport market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and the COVID-19 impact, is covered in the report.
The inland water freight transport market is segmented by type of transportation (liquid bulk transportation and dry bulk transportation), vessel type (cargo ships, container ships, tankers, and other vessel types), and geography (North America, Europe, Asia-pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Type of Transportation | |
| Liquid Bulk Transportation | |
| Dry Bulk Transportation |
| Vessel Type | |
| Cargo Ships | |
| Container Ships | |
| Tankers | |
| Other Vessel Types |
| Geography | |||||||
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Inland Water Freight Transport Market Research FAQs
How big is the Inland Water Freight Transport Market?
The Inland Water Freight Transport Market size is expected to reach USD 14.5 billion in 2024 and grow at a CAGR of greater than 3.73% to reach USD 17.29 billion by 2029.
What is the current Inland Water Freight Transport Market size?
In 2024, the Inland Water Freight Transport Market size is expected to reach USD 14.5 billion.
Who are the key players in Inland Water Freight Transport Market?
American Commercial Barge Line, Ingram Barge, Kirby Inland Marine, American River Transportation and CMA CGM Group are the major companies operating in the Inland Water Freight Transport Market.
Which is the fastest growing region in Inland Water Freight Transport Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Inland Water Freight Transport Market?
In 2024, the Europe accounts for the largest market share in Inland Water Freight Transport Market.
What years does this Inland Water Freight Transport Market cover, and what was the market size in 2023?
In 2023, the Inland Water Freight Transport Market size was estimated at USD 13.96 billion. The report covers the Inland Water Freight Transport Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Inland Water Freight Transport Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Inland Water Freight Transport Industry Report
Statistics for the 2024 Inland Water Freight Transport market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Inland Water Freight Transport analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
