Maritime carriers in a buying frenzy
Players earning more in one year than in ten arouses an acquisitory mood. The major shipping lines posted profits of approximately EUR 80 billion in 2021. The Geneva-based carrier MSC, whose figures aren’t included in this total, has shown a particularly strong appetite for expansion. It is investing in the logistics segment, as well as in its regional coverage, like never before.
How quickly a player can reach the top of the food chain! The major shipping lines generated total profits of around EUR 80 billion between them in 2021 (see also page 7 of ITJ 49-52 / 2021). The Geneva-based maritime carrier MSC is a private company that doesn’t publish its figures; hence they aren’t included in the total cited above. The line is nevertheless particularly keen on expansion just now.
A lonely battle for the lead?
The many recent acquisitions in the segment make people forget that, despite the major alliances forged in the industry, competition between the carriers isn’t over at all.
MSC set a new a milestone at the turn of the year. As expected, it has now overtaken Maersk as the world’s largest shipping line in terms of operational ship capacity. The latest fleet statistics, published by the consultancy Alphaliner, show that MSC (645 containerships) has a capacity of almost 4.29 million teu, which corresponds to a global market share of exactly 17%.
What’s remarkable is that this growth wasn’t achieved through mergers and acquisitions, but organically, through newbuildings and purchasing used ships. Incidentally, the Danes have always taken the position that their primary focus is on profitability, rather than on fleet size.
With almost 1 million teu of confirmed newbuildings, MSC should now be able to further consolidate its position in H1 / 2022, when new units will join the fleet.
From logistics arm to logistics octopus
Since Søren Skou became Maersk CEO in 2016, the line’s strategy of covering the entire supply chain, including all logistics services, has become the new credo in its maritime shipping activities – an approach that naturally hasn’t particularly thrilled other players.
The dominoes are continuing to tumble merrily. Maersk acquired the contract logistics group LF Logistics (223 warehouses) for USD 3.2 billion before Christmas; CMA CGM bought the e-commerce and omni-channel segment (CLS) from the Californian firm Ingram Micro for USD 3 billion in December. Ceva is pushing ahead with its logistics activities and banking on its own airfreight division.
MSC has once again taken the cake in this field, however. In December 2021 the line signed an agreement with France’s Bolloré Group to acquire Bolloré Africa Logistics, a pan-African service provider as well as a terminal operator. The basis for the deal is an overall valuation of EUR 5.7 billion for the enterprise.
In the first quarter of 2022, MSC additionally plans to complete its first acquisition of a freight forwarding group, when it will acquire 67% of the shares in the Brazilian logistics company Log-In Logistica. Business is really moving along at a rather stormy pace in the industry.
At the same time, cut-throat competition is continuing, however. The European freight forwarders’ association Clecat is urging the EU to take action against Maersk and Hamburg Süd, which only offer their slots on the spot market instead of via direct bookings. The outcome of these efforts is very open.
