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After the Hanjin collapse do mid-sized container lines have a future?
Container shipping is highly fragmented with a number of mid-sized lines holding a market share of just 2 – 3%. In a global industry where size and scale have become the watchwords for the mid-sized the fight for profitability and even survival has become ever more difficult.
1 Min Read
Kalyakan - stock.adobe.com
The end of August saw the world’s seventh-largest container line Hanjin Shipping, with a global market share of 2.9%, file for bankruptcy. This followed two other lines United Arab Shipping Co and APL, which had 2.6% and 2.8% market shares respectively, have gone down the merger path. Both merged with much larger companies CMA CGM in the case of APL, which it acquired, and UASC with Hapag-Lloyd in which it will have a shareholding.
A number of other lines remain in the 2 – 3% capacity bracket and most continue to struggle for profitability.
Does this mark the end of the mid-sized container line? Read White Paper - Future of the Container Industry 2016 - to see what Seatrade Maritime News thinks the future holds.
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