Market outlook in the post-concentrated liner era (commercial aspect)

“Alone we can do so little; together we can do so much.”, Helen Keller (1984). This is very true for the shipping industry, specifically the container market where consolidation among liner companies is the trend to curb today’s market situation. In view of such trend, it is now the high time to exa...

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Bibliographic Details
Main Author: Loo, Ting Ting
Other Authors: Chiu Sai Hoi, Benson
Format: Final Year Project
Language:English
Published: 2018
Subjects:
Online Access:http://hdl.handle.net/10356/75598
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Institution: Nanyang Technological University
Language: English
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Summary:“Alone we can do so little; together we can do so much.”, Helen Keller (1984). This is very true for the shipping industry, specifically the container market where consolidation among liner companies is the trend to curb today’s market situation. In view of such trend, it is now the high time to examine the consolidation phenomenon and its resulting market outlook in the post-consolidation era. The objective of this report is to study on the commercial aspects that will be impacted by the rapid consolidation of liner companies and the resulting market outlook. Commercial aspects covered include i) Customer Relationship Management ii) Freight Rates and iii) Business Structure. Liner concentration serves as a short-term solution for better freight rate stabilization before it is interfered by other factors, for instance, political issues. This phenomenon has also led to the increasing capability of consolidated shipping lines to offer wider geographical coverage and higher port calls frequency but with decreased service quality, which could stabilize after the initial stage. This had resulted in a more competitive environment for both individual shipping lines and feeder companies. 3 recommendations: 1) Stable Business Investment, 2) Digitalization, and 3) Stronger Alliance Integration are proposed for the market players to embark, in the hope of managing all possible risks and capturing potential opportunities exist in the post-consolidation era There are varied opinions on the effects of liner consolidation, depending on the stakeholders’ position in the market. However, conclusion can be made that the market will turn towards a positive situation where most of the market players, generally the shipping lines and feeders, can gain some benefits out of the situation in post-consolidation era before the beginning of another consolidation wave.