X

X

LET'S CONNECT

We would love to get to know you. Please fill in the form and we will get back to you as soon as we can.

X

Subscribe to our newsletter.

X

Whitepaper

The Human Edge in the New Age of Container Shipping

Download the whitepaper to know how the people behind the organization can support the growth and productivity



X

Whitepaper

The Complexities of Upgrading The Terminal Operation System

When acquiring or upgrading a commercial TOS solution, it would serve terminals well to outsource IT complexities. By working with an experienced IT partner that incorporates the industry’s best practices have proven to improve operational productivity and competitiveness. Download whitepaper to understand how adopting smart terminal operating systems can aid in improving overall productivity.



X

Whitepaper

Communication Imperatives for Connected Ocean Carriers

CARA streamlines business processes by standardising and automating data exchanges to facilitate co-operation between carriers of various degrees such as slot charter, slot swap, joint operations and alliances. Download the whitepaper to understand how effective synchronisation and data transparency can streamline processes and improve overall customer service.



X

Whitepaper

Total and Integrated Liner Management System for Ocean Carriers

Facing the shipping industry right now, is the onset of depressed freight rates, geopolitical turbulence and overcapacity of ships. The market is also seeing a rising trend of shipping lines who are now deeply committed to investing in IT solutions to take them to the next level of performance. Download whitepaper to understand how adopting smart liner management solutions can aid in improving overall productivity.



X

Whitepaper

5 Key Maritime Logistics Trends in 2019

As the industry leverages the latest technologies for growth, some things have changed to cloud the outlook ahead. Carriers have begun to behave differently because of varied changes in external market factors like geo-political climates and trade inbalances, and internal factors such as data duplication, lack of collaboration and the inability to optimize resources. CyberLogitec sees 5 dominant trends this 2019 that we believe will bring clarity in shaping the way forward.



X

Whitepaper

Transforming Logistics with Digitization

Today's competitive logistics marketplace is being redefined by future-thinking innovative freight forwarders who are putting shipper's needs first in their drive to digitalize.




Budding Merger Trend among Shipping Companies Something Out of the Ordinary

Lately, specifics of a merger are being discussed between COSCO and China Shipping, China’s two biggest shipping companies, while various media outlets have forecast its completion in 2017. COSCO has a 4.8% share and China Shipping has a 3.6% share of the current liner shipping market. If a merger realizes, the combined company’s market share will shoot up to 8%, thus placing it at fourth after CMA-CGM (8.9%). Meanwhile, it was reported that UASC was going to acquire APL. Provided the merger of the two companies realizes, their combined market share will soar to 5% and their combined fleet will exceed 1 million TEU.

Division 2M CKYHE G6 Ocean3 Other
Shipping routes to North America MSK 9.6%

MSC 4.6%

 

 

 

 

SUM 14.3%

HJS 7.5%

COSCO 7.8%

EMC 9.8%

YML 4.5%

K-Line 6.0%

 

SUM 35.6%

HPAG 5.3%

NYK 4.2%

OOCL 4.9%

APL 6.9%

MOL 5.2%

HMM 4.1%

SUM 30.6%

CMA-CGM 7.5%

CSCL 2.6%

UASC 1.7%

 

 

 

SUM 11.9%

7.7%
Shipping routes to Europe MSK 19.0%

MSC 16.3%

 

 

 

 

SUM 35.2%

HJS 4.8%

COSCO 5.9%

EMC 6.2%

YML 4.1%

K-Line 2.9%

 

SUM 23.8%

HPAG 4.4%

NYK 3.1%

OOCL 2.3%

APL 3.3%

MOL 2.9%

HMM 2.4%

SUM 18.4%

CMA-CGM 10.9%

CSCL 5.8%

UASC 4.5%

 

 

 

SUM 21.1%

1.4%
All oceans 28.5% 17.0% 18.4% 14.7% 21.4%

If you look at the market shares for the four major alliances as shown on the table, 2M has 14.3%, CKHYE has 35.6%, G6 has 30.6%, and O3 has 11.9%, thus showing CKHYE and G6 as rulers of the North American market. For European shipping routes, 2M takes up 35.2%, CKHYE takes up 23.8%, G6 takes up 18.4%, and O3 takes up 21.1%, thus showing 2M and O3 as dominating the market.

Current market shares for major global shipping companies

If COSCO and China Shipping really merge and the combined company chooses CKHYE, it will significantly compromise the market dominance of O3 in European shipping routes. On the contrary, if the combined company chooses O3, it will significantly diminish the market dominance of CKHYE in North American and European shipping routes.

Furthermore, if major shipping companies break out of an alliance, it inevitably brings change to the fleet organization, ports of call, and services for the entire alliance. In this light, we can expect that the merger and acquisition trend among major shipping companies will reorganize the current alliances while the combination of shipping companies will create new alliances.

Besides, since the strategic alliances are closely related to the ordering of super-large ships and collection of cargoes, global shipping companies should wisely cope with the changes coming to the current alliances.

Author: Jeon Hyeong-jin, Shipping Market Analysis Center Director
Source: KMI Shipping Market Trend Focus, No. 268