Disparity in fleet size between container carriers is getting bigger and bigger

Container ship MSC GULSUN (Photo: MSC)

Currently, MSC - the world's largest container shipping line - has a fleet of 4.48 million TEU, compared to 93,410 TEU of SM Line ranked 20th, with a gap of 4.38 million TEU.

Back in 2017, when Maersk Line led the market, the gap between the Danish shipping line and the 20th ranked container shipping line was 3.2 million TEUs.

The figures show how the major shipping lines at the top have expanded the size of their fleets as their earnings have skyrocketed over the past two years. As of mid-August, the top 10 shipping lines are operating with a capacity of 21.8 million TEUs, while the next 20 carriers (ranked 11-30) are operating 2.5 million TEUs.

Alphaliner said, “Following widespread consolidation at the top of the table - consolidation that has attracted the attention of politicians and regulators - there is now a large gap between the leading carriers and the rest of the container field.”

The number of shipping lines operating long-haul routes with more than 1 million TEUs has increased from six to seven in the past five years. Notably, the three major Japanese shipping lines Mitsui OSK Lines, NYK Line and 'K' Line have merged their container businesses to form Ocean Network Express (ONE).

Despite the differences in fleet sizes, Alphaliner found that the profits of the transpacific carriers significantly outperformed the profits of those operating the routes focused on domestic/regional routes. US-listed Matson Navigation and South Korean carrier SM Line have been the main winners since 2019 in terms of increased operating profit.

Matson posted an operating profit of $1.14 billion in 2021, an all-time high in history and a nearly 5-fold increase from 2020, while SM Line, the shipping line, sank in losses in its first two years of business, recorded an operating profit of $822 million in 2021, a ninefold increase from 2020.

SM Line operates at 94% capacity on the transpacific service, the highest number among the top 20 carriers. The results contrast with other small and medium-sized carriers that mainly focus on niche routes. For example, profit growth of China's largest domestic shipping line Zhonggu Logistics has been modest. Zhonggu's operating profit is $505.17 million in 2021, just more than double that of 2020.

Read more:

• MSC Tessa breaks the record for the world's largest container ship with a capacity of 24,116 TEU
• MSC overtakes Maersk to become the world's largest container shipping line

Source: Phaata.com (According to ContainerNews)

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