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The three rising stars of this decade so far are CMA CGM, CSCL and Hapag-Lloyd.
CMA CGM logged a market share rise of 133%, with its share climbing from 2.4% to 5.6% during the past 6 years. Organic
growth counts for more than 80% of this figure while the 2005 purchase of Delmas contributes to less than 20%. At the
same time, CSCL has more than doubled its market share from 1.7% to 3.8%, only through organic growth. As for
Hapag-Lloyd, its market share grew from 2.0% to 4.5%. The 2005 purchase of CP Ships counts for around three quarters of
this growth. Without the CP Ships contribution, Hapag-Lloyd would have seen its market share growing from 2.0% to 2.5%.
MSC comes at the fourth place with a share which has almost doubled as it rose from 4.4% to 8.6%. During the period
2000-2006, MSC has climbed from the fifth rank to the second rank in the TOP carriers league, with a trebling in fleet
capacity.
Next comes the CSAV Group, with a share which has risen from 1.4% to 2.6%, partly thanks to the purchase of Norasia in
2000 and the Norsul liner services in 2002, and partly to organic growth.
Although it remains at the top slot in terms of fleet capacity, the AP Möller-Maersk Group comes at the eighth position
for market share growth, a rank achieved thanks to the 2005 purchase of Royal P&O Nedlloyd which allowed it to boost its
market share from 12.5% to 18% overnight, corresponding to an increase of 51% compared with January 2000. Prior to the
PONL purchase, the Maersk market share had been stagnating at around 12% since January 2000 (and incidentally, the PONL
market share was stagnating as well). Despite this huge jump, it still lagging behind MSC, its closest rival in fleet
capacity terms. Maersk is by far the largest carrier with a fleet reaching 1.66 Mteu, almost twice the size of MSC.
Some carriers with a strong regional bias are also doing well, although for them, the concept of global market share is
of low significance. IRIS Lines, Hamburg-Süd Group and PIL have gained significant market shares in global terms, which
also means that their regional market shares has grown still stronger.
Two carriers heavily involved in feeder trades have also kept well the pace, RCL and Sea Consortium. They managed to
increase their market share by 4% and 10% respectively (although for RCL, its efforts to develop its own common carrier
services have also helped).
Japanese lines NYK, MOL and K Line have managed to maintain more or less their shares, and are no longer as expansive as
they used to be.
Those who win market share get it of course at the expense of rivals. For example, the Evergreen Group saw its market
share diminished by 15%, down from 6.2% to 5.2%. Evergreen was ranked in second position in 2000 with a fleet of 318,000
teu. It has since been relegated to the fourth slot despite a growth to 478,000 teu.
COSCO Container Lines has seen its share decrease by nine points since 2000 but is now strongly reacting and this slide
has come to a halt over the past 18 months. It is now on the rising slope again, an interesting trend as it has been
listed on the HKSE in June 2005.
Korean carriers Hanjin Shipping (including Senator Linie) and Hyundai Merchant Marine have suffered of the post-1997
financial crisis. They were at the time the shipping divisions of heavily indebted chaebols, which had to slash
expenses. The result is that newbuilding programs have been minimal. They are at least still there, which is not the
case of independent compatriot Choyang Line, which disappeared in 2001.
A few regional players have also losed grip. UASC and MISC have each one lost 45% in relative importance. UASC did not
invest, and it has waited March 2005 to launch a construction program for eight ships of 6,800 teu. MISC has put the
emphasis on energy transportation and has not received a single containership since the late 1990s, and its orderbook is
limited to 16,000 teu. Africa specialist Delmas has seen its market share dropping by 40% during the 5.5 years preceding
its purchase by CMA CGM. Delmas has been hit by the low growth caracterising Africa and by a lack of interest by parent
company Bolloré.
Among smaller carriers, Costa Container Lines built-up a consistent market share on American trades, boosting its
overall presence from insignificant to 0.4% while the China Navigation Co (Swire Group) strengthened its presence on the
South Pacific markets. On their side, Chinese regional carriers SYMS and SITC have made their place. SYMS has even
entered the TOP 30 in December with its fleet passing the 32,000 teu mark. SYMS launched its first international
services in 1999.
It is also interesting to see the pace at which the concentration is going. The Top 10 carriers had a combined market
share of 49.3% in January 2000. It now stands at 60% (The Top 10 fleet has more than doubled, from 2.54 Mteu to 5.48
Mteu). Their combined market share has thus risen by 21.7%. At the other end of the scale, the fleets of carriers ranked
51 to 100 has stagnated at just under 400,000 teu, with a resulting loss of almost 45% in market share (from 7.7% in
2000 to 4.3% in 2006). In the attached graph, we have inserted the rise in market shares of groups of carriers (Top 10
carriers, carriers ranked 11 to 25, etc.).
> See the accompanying graph, which speaks for itself.
See also our May 2005 survey, which shows the evolution of
market shares prior to the second half 2005 acquisition wave.
>>http://www.brs-paris.com/newsletters/liner_studies/no28 |
