The top 100 liner companies will at least disappear 30! The integration of the shipping industry con
- Author:Alvin
- Source:HKSG-GRUP
- Release Date:2018-03-15
Lars Jensen, CEO of the Danish shipping industry research firm SeaIntelligence Consulting, said at the Pan Pacific Shipping Forum (TPM) held in the United States that the integration of the shipping industry will continue and will focus on the small and medium-sized operators in the top 100 capacity carriers. . He expects that at least 30 of the world’s top 100 liner companies will disappear.
The significant consolidation in the container shipping market is expected to bring direct benefits to the shipping companies. With the recent wave of consolidation, most of the transactions have either just ended or have not yet been completed. After completing the transaction, the leading seven shipping groups will control about 90% of the existing fleet of container ships.
After the integration of large-scale liner companies in the past few years, the market structure of the shipping industry seems to have stabilized. Driven by the recovery of global economic and trade, the market has gradually come out of the trough. However, Lars Jensen said: “Market integration is far from over.” He believes that companies including modern merchant ships and Star Shipping may become targets for the next round of acquisitions.
He also predicted that at least 30 of the top 100 liner companies in the global capacity ranking will disappear, including through bankruptcy or acquisitions. "It is difficult to predict which companies will disappear, but I think it is equally important that financial performance and the use of capital means to overcome the opponents," he said.
Although the container and shipping industry is moving towards a situation dominated by a few shipping companies, most of the industries are still healthy competition. Consolidation companies need to pay close attention to deals affecting their main routes.
In addition, for the large number of orders for ultra-large container ships that emerged in the market in 2017, he thought: “We have already got out of this predicament, but now the market has changed again.” He predicted that in the next 4 years, especially with the creation of a new large ship by 2020 After being put into operation one after another, the market will face further turbulence, and the overcast haze will return to power in 2020. He also said that some new alliances that have operated for less than one year will face a new reorganization, mainly because COSCO Marine will acquire Orient Overseas.
The significant consolidation in the container shipping market is expected to bring direct benefits to the shipping companies. With the recent wave of consolidation, most of the transactions have either just ended or have not yet been completed. After completing the transaction, the leading seven shipping groups will control about 90% of the existing fleet of container ships.
After the integration of large-scale liner companies in the past few years, the market structure of the shipping industry seems to have stabilized. Driven by the recovery of global economic and trade, the market has gradually come out of the trough. However, Lars Jensen said: “Market integration is far from over.” He believes that companies including modern merchant ships and Star Shipping may become targets for the next round of acquisitions.
He also predicted that at least 30 of the top 100 liner companies in the global capacity ranking will disappear, including through bankruptcy or acquisitions. "It is difficult to predict which companies will disappear, but I think it is equally important that financial performance and the use of capital means to overcome the opponents," he said.
Although the container and shipping industry is moving towards a situation dominated by a few shipping companies, most of the industries are still healthy competition. Consolidation companies need to pay close attention to deals affecting their main routes.
In addition, for the large number of orders for ultra-large container ships that emerged in the market in 2017, he thought: “We have already got out of this predicament, but now the market has changed again.” He predicted that in the next 4 years, especially with the creation of a new large ship by 2020 After being put into operation one after another, the market will face further turbulence, and the overcast haze will return to power in 2020. He also said that some new alliances that have operated for less than one year will face a new reorganization, mainly because COSCO Marine will acquire Orient Overseas.