Shipping Lines’ Terminal M&A Strategy and Forwarders’ Local Strategies

Shipping Lines Expanding into Container Terminals

In recent years, major shipping lines have actively invested in container terminals.

Companies like Maersk and CMA CGM have been acquiring terminals, strengthening their presence in the sector.


Traditionally, global terminal operators (GTOs) such as PSA (Singapore), Hutchison Ports (Hong Kong), and DP World (Middle East) dominated the industry.

However, shipping line-affiliated terminal operators are now expanding their market share.


For instance, CMA CGM and COSCO have strengthened their global terminal businesses, while Hapag-Lloyd launched “Hanseatic Global Terminals” last year.

Owning terminals provides shipping lines with several strategic advantages.

Benefits of Shipping Lines Investing in Terminals

Gemini Alliance and Schedule Reliability

The Gemini Alliance, a partnership between Maersk and Hapag-Lloyd, aims to achieve a schedule reliability rate of over 90%.

By leveraging terminal data, they can predict and mitigate delays.

For example, if key ports like Singapore or Rotterdam face congestion, the alliance can proactively secure alternative routes.

MSC’s Direct Service Strategy

MSC, the world’s largest shipping line, is optimizing schedules by increasing direct services and reducing transshipments.

Terminal ownership plays a crucial role in this strategy, ensuring greater flexibility and control.

Forwarders Strengthening Local Networks

While shipping lines focus on global assets, forwarders like Yusen Logistics are strengthening their local logistics networks.

Yusen recently acquired a customs brokerage and warehouse company in Hiroshima, Japan, reinforcing its domestic operations.


For international shipments, local handling is crucial.

A European company shipping goods to Hiroshima, for example, requires efficient domestic distribution, which forwarders specialize in.

This is true not only in Japan but also in emerging markets like Thailand and Indonesia.

Conclusion

As shipping lines and forwarders refine their strategies, their roles in the global logistics industry will become even more distinct.