Consolidation in the Shipping Industry – An analysis of Causes and Recent Developments

Abstract

Consolidation plays an important role in today's global container shipping industry. This bachelor thesis aims at analysing to which extent shipping lines need to undertake consolidation measures in order to survive in their industry. This research is carried out in the following manner: First, theoretical information on consolidation, different forms and their implications is provided. Second, the market structures and competition in the global shipping industry is examined. Lastly, practically applied examples are presented, recent developments in the industry examined and future scenarios of consolidation reasoned. The research question is not easily and clearly answered. However, it can be said with certainty that the consolidation wave will continue in the near future and that the main problems of overcapacity and low freight rates do not seem to be solved yet. As long as competition and antitrust authorities carry on approving the transactions and as long as the financial market provides the necessary loans, consolidation in the global shipping industry will continue. With the findings of this bachelor thesis a cause analysis was created, which includes current problems and recent developments. It could serve as a basis for further research, perhaps to create a quantitative index that measures the concentration in the industry.