Shipping Industry Consolidation? HMM Sales Process Initiated

Dana Hare Featured, News

Hyundai Shipping Line (HMM) is poised to initiate sales discussions at a potential price point of $3.9 billion.

Ocean freight rates have seen sustained decline over the past nine months.

In response, some freight companies have pursued mergers and acquisitions (M&A) to maintain their market presence.

The top 10 carriers command 85% of the global shipping container market. The top 7 control over 78%, while the top 4 control 58%. As the COVID-19 pandemic demonstrated, supply and demand imbalances can substantially impact prices. This potential merger raises questions about a resurgence of such dynamics in the freight industry. Will further consolidation of an already consolidated industry cause increased prices?

Canaan maintains collaborations with all top 10 carriers, along with smaller carriers, including those operating in the Intra Asia/Europe routes. Whatever the future holds for the ocean freight industry, we’re ready to help you get the most competitive price available.