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.

The end of August saw the world’s seventh largest container line Hanjin Shipping, but 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 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.

Source: seatrade-maritime.com