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Alphaliner: Top Carriers’ Combined Capacity Hits New Record
Driven by a spate of recent shipping industry consolidation moves, the combined capacity share operated by the Top 10 carriers reached a new record in 2017, according to Alphaliner.
Increased market concentration has led to a rise in the major carriers’ combined capacity share, which stood at a record high of 77% at the end of the year.
The consolidation spree was capped by the completion of the Hapag-Lloyd acquisition of UASC in May and Maersk’s acquisition of Hamburg Süd at the end of November.
Alphaliner said that this figure is set to continue rising to reach 82% with the impending absorption of OOCL by COSCO and the merger of K Line, MOL and NYK to form Ocean Network Express (ONE).
The top three carrier postitions in the global operator rankings are still being held by Maersk, MSC and CMA CGM.
However, COSCO and Hapag-Lloyd have closed the gap through consolidation moves in the last two years. Following the completion of acquisition of OOCL, COSCO is expected to leap into the number three spot, Alphaliner commented.
CEO: HMM Looking to Double Vessel Capacity by 2022
South Korean shipping company Hyundai Merchant Marine (HMM) intends to double its vessel capacity by 2022 as part of the company’s long-term plan, C.K. Yoo, HMM President & CEO, said in its New Year message.
The plan includes the recently unveiled 22,000 TEU newbuilding construction project that is expected to be realized this year.
As explained by Yoo, HMM’s maritime technology sector needs to improve the efficiency of ships operation in an effort to enhance the safety and fuel consumption. Further, the sector needs to focus on all of the technologies applicable to the building of mega containerships, in addition to keeping a close eye on new technologies which may turn out to be a “game changer.”
During the past year, the company concluded deals with K2 and 2M, making use of its tonnages and achieving “synergy as a result of the cooperation.” Now, HMM is to design products in newly added services in the East-West lane and offer more products, combined with expanded coverage in Asia through the cooperation with K2.
In the future, HMM’s focus will be on optimal use of vessel and terminal assets, as informed by the CEO.
“I am convinced that these achievements have laid a solid foundation for our long-term plan where we continue to consider ways of doubling our vessel capacity by 2022 including the launching of mega containerships as we deem the environmental regulations in 2020 as a golden opportunity for our resurgence,” Yoo concluded.
K Line: We Must Continue to Be Ready for Tough Times
2018 promises to be a decisive year for Japan’s K Line Group as the company steams its way toward rebuilding its portfolio strategy.
“This spring, we will take a giant step forward as a brand-new K Line Group. Moreover, 2018 will be the year in which we solidify our foothold in preparation for the next 100 years.
I believe that, if we steadfastly execute our respective roles and consolidate our strengths as professionals, this one year will become an important link to a new era,” K Line’s President & CEO, Eizo Murakami said in a New Year message.
First and foremost the company’s containership and overseas terminal business will be integrated with MOL and NYK’s respective businesses in a new company, Ocean Network Express (ONE), set to start operation in April 2018.
Moving forward K Line plans to focus on dry bulk, car carrier, energy transportation and marine resources development.
K Line is on the path of financial recovery having returned to the black in the first half of 2017 fiscal year.
Strenuous efforts were invested in large-scale structural reforms over the past two years in order to weather the storm brought about by the downturn in the container and dry bulk shipping businesses.
Aside to business overhaul, better financial performance has also been attributed to improving market conditions.
However, this is not the time to drop down the guard, as more time needs to pass before the market fully recovers, according to Murakami.
NYK Line Eyes Business Acquisitions
Japanese shipping company NYK Line will be looking into business acquisition opportunities in the year ahead.
A window of opportunity has been identified in the transportation of oil and petroleum products, especially since the focus of the sector is expected to switch to Asia in the future, NYK’s President Tadaaki Naito said in his New Year’s speech.
“I want you to work with a broad perspective that includes peripheral businesses, such as terminals,” Naito said addressing his employees in Tokyo.
Speaking of the bulk shipping business, Naito said that he wants the liquid division to search for new business opportunities based on the keyword “green.”
With regard to the dry bulk division, Naito expressed a belief that in the second half of last year the industry finally exited the long, seemingly endless dark tunnel hampering the dry bulk segment. Now that the market is recovering, it is time to advance structural reforms aimed at transforming all the efforts made with gritted teeth, he stressed.
As explained, promotion of “digitalization” and new technology such as autonomous sailing has the potential to advance the next generation of safe vessel operations.
Naito added that the company plans to announce a new medium-term business plan this spring and indicate the process management that will be necessary to realize the plan.
Naito concluded that the group’s business results are showing signs of improvement due to a recovery of market conditions and internal restructuring efforts
Source: World Maritime News
