Recent news of Hanjin going under casts a seemingly darker cloud upon the shipping industry. The veritable arms race between ocean carriers to build bigger and seemingly more efficient ships has been met with devastatingly low demand, creating a serious issue for carriers. As more and more capacity continued to hit the seas in spite of continually dropping demand, carriers have been scrambling to find a solution.

1. How Beneficial Are Ocean
Freight Industry Mergers?

2. Join The Conversation
On Twitter
@XENETA_AS

3. About
Xeneta
Container Freight Pricing
Transparency With One Platform In
Real Time & On Demand.

4. Are You Paying The
Right Container Freight
Rates?
Discover Savings
Potential In Real
Time.
Contact Us.

5. Recent news of hanjin going
under casts a seemingly darker
cloud upon the shipping industry.
The veritable arms race between
ocean carriers to build bigger
and seemingly more efficient
ships has been met with
devastatingly low demand,
creating a serious issue for
carriers.

6. As more and more
capacity continued to
hit the seas in spite of
continually dropping
demand, carriers have
been scrambling to
find a solution.

7. Many carriers have
resorted to stop gap
measures as a
means of
combating the
failing profit
margins. These
short lived
measures have
included numerous
bouts of general
rate increases (gris).

8. Mergers & Acquisitions

9. Reaching critical mass, and forced with making a
decision, carriers have finally resorted to what many
industry analysts have predicted since the start of the
capacity / demand imbalance.
Reaching critical mass, and forced with making a
decision, carriers have finally resorted to what many
industry analysts have predicted since the start of the
capacity / demand imbalance.

10. Will Joining Forces Help?

11. Hot on the heels of this development came the grouping
known as the ocean alliance, bringing together france’s
cma cgm sa and china’s cosco group, the third-largest
and fourth-largest shipping lines respectively. Tagging
along beside them were hong kong’s orient overseas
container line and taiwan’s evergreen marine corp. Once
the ocean alliance begins operations next february,
analysts believe that it will control about 26% of asia-eu
share,
- patrick burnson, executive editor for logistics
management and supply chain management review

12. In fact, the ever
growing alliances
and reorganization
of the carrier
hierarchy as a
whole is happening
so fast that even
industry analysts
are finding it
difficult to keep
track of.

13. Rationalizing Hindsight

14. With the maritime industry
becoming a feeding frenzy, as
bigger companies gobble up
smaller ones in the attempt to
capture and hold enough of the
market share to stay afloat, the
industry as a whole will now have
to answer to their decision for the
mass merging as well as the
investment in larger ships.

15. The GSFis looking to establish a “maritime industries supply
chain forum” on an international level, to bring the industry as a
whole together to explore, address and ultimately correct the
issues plaguing the industry.
However, while the maritime industry is looking at steps for self
preservation will these mergers be enough to shelter the industry
from the abysmal predictions for 2016, or will these also prove to
be yet another arbitrary attempt to circumvent the coming storm?

16. Stay Informed With Shipping Prices In
Real Time
Watch
Webinar

17. Learn How Xeneta Can Help
You Get Insight And Intelligence Into
Your Global Ocean Freight Prices And
Change Your Logistics Business:
Request
Demo now