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After
2001 the industry experienced a number of
large mergers and acquisitions, which led
to a much less fragmented market. By the
end of 2011 the top 10 carriers held a market
share of 63 per cent, while the top three
carriers saw their share rise to 38 per
cent. This is a massive jump from a decade
earlier.
If
we then fast forward to the present, the
market concentration has increased even
further, despite the absence of mergers
and acquisitions.
The
top 10 carriers as of May 2013 now hold
69 per cent of the industry's market share,
while the top three have increased to 40
per cent. This is remarkable considering
there have been no mergers among the major
players.
In
other words, the container shipping industry
is undergoing consolidation, but it is consolidation
through asset expansion, not mergers. Therefore
it is much more subtle.
But
regardless of whether the consolidation
is subtle or overt, the end result will
be the same - fewer players that will continue
to control more and more of the market and
a significant reduction in industry competition.
The ultimate losers in this scenario
will be the shippers.
Let's
now see which players command the bulk of
the market share today.
 click image
to enlarge
Clearly
Maersk Line is the leader. It has grown
its market share from 3.6 per cent in 1980
to 16.3 per cent today. This increase in
market share has been greatly helped through
mergers and acquisitions.
MSC
on the other hand, which has grown its market
share from 3.3 per cent in 2001 to 14.5
per cent has done so through the more subtle
approach - adding more and more ships to
its fleet. CMA CGM has also been a big mover
over the past decade, increasing its share
from 1.9 per cent in 2001 to 9.1 per cent
today.
Within
the top 10 players itself there is a fairly
even spread in terms of market share. However,
the three to watch going forward will be
Maersk Line, MSC and CMA CGM, which have
increased their shares so significantly
over the years, and continue to do so today.
Should
they grow much further it could become a
major challenge for the rest of the industry
to overcome, particularly on the Asia-Europe
and transpacific trades where only the biggest
carriers will be able to survive.
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