The Global Shipping Industry (November 2022)

The Global Shipping
Industry
Market Analysis - 2021-2024 Trends -

Stakeholder strategies
Date of publication November 2022
Main contributors Vinchenzo Borrego, Olivier Lemesle, Luc Brunet
Report code 22WXSTR05
XERFI 13-15 rue de Calais, 75009 Paris, France Tél. : +33 1 53 21 81 51 Fax : +33 1 42 81 42 14 E-mail : etudes@xerfi.com Site web : www.xerfi.com (catalogue complet)
The 5 phases of Xerfi Global’s Global Markets and Competition reports
Identification of the playing field
At Xerfi Global, we believe that international classifications are not the only valid definition of a market. It
is the companies that make the sector and not vice-versa. During our first brainstorming session, we strive
to give a clear-cut definition of the scope of the report.
Identification of market leaders

During the second phase, Xerfi Global’s analysts identify the companies who will be studied in the report.
Our aim is not only to classify by total sales, but also to detect tomorrow’s movers and shakers, especially
those from emerging markets.
Identification of the main market indicators

Using the best and most up to date international sources, Xerfi Global’s experts handpick the most
relevant indicators pertaining to both supply and demand.
Identification of corporate strategies

During a further brainstorming session, the Xerfi Global team aims to decipher the main corporate
strategies and key future trends.
Identification of the key conclusions

Thanks to a final brainstorming session, drawing on the knowledge of all the members of Xerfi Global, the
main conclusions are debated and ultimately summed up in no more than a dozen slides. Concision,
precision and accurate forecasts are our main aims.
This is a collective report written Other contributors include: Olivier Lemesle

under the supervision of: Luc Brunet
Vinchenzo Borrego
The Global Shipping Industry - November 2022 2

Table of contents
1. Summary 5
1.1 Summary 6
1.2 Key Slides 7
2. Market fundamentals 19
2.1. Scope of the report 20
2.2. Overview 21
2.2. Market fundamentals 23
3. The market and leaders' activity 28

3.1. Sectoral environment 29
• Overview 30
• Public authorities 31
• Economy 32
• Society and technology 38
• Legislation and ecology 40
3.2. The global maritime transport market 42

• The global maritime container market 43
• Supply-side indicators 46
• Maritime container traffic 53
3.3. Leaders' activity and performances 57

• Revenue 58
• Operating profit rate 60
• Individualised activity and performance 61

Table of contents
4. Competition and leaders' strategies 64
4.1. Competitive environment 64
• Porter's 5 forces (Overview) 65
• Competitive intensity 66
• Threat of new entrants 71
• Government's influence 74
• Bargaining power of customers 75
• Bargaining power of suppliers 76
• Threat of substitutes 79
4.2. Leaders' strategies 81

• Overview 81
• Strengthening maritime capacities 82
• Diversifying into logistics 86
• Business digitalisation 89
• Decarbonising 92
5. Sources 96
6. Annexes 100

1. Summary

1.1 Summary
Main trends 2021-2024
• After a very good year in 2021, thanks to the global economic recovery and the surge in maritime freight rates, shipping
companies’ revenue reached new historic highs in 2022. The sector benefited from a significant price effect due to the sharp rise
in freight rates caused by the various supply chains disruptions as well as persistent congestion in some ports. However, the
stalemate in the war in Ukraine, the unfavourable economic situation and the rapid decline in freight rates at the end of 2022
will most likely imply lower revenues in 2023.
• After a lull in container ship purchases since 2016, shipping groups received an increased amount of orders in 2021 and 2022.
In November 2022, the industry's order book stood at 6.68m TEUs, or 25.8% of current total capacity, compared with an average
of 13% over the period 2016-2021. Maritime companies took advantage of their very good financial results over the last two
years to massively invest in their fleets. However, with the deterioration of the economic situation, the increasing rise of
protectionist policies and the gradual regionalisation of trade, shipping companies are likely face an excess of container ship
capacity. However, some of these new ships are intended to replace older ships currently in operation.
• The exceptional results of 2021 and 2022 are likely to accentuate the strong concentration of market shares within the shipping
industry. These groups now have substantial cash flow at their disposal and are currently investing it to strengthen their
positions. Even if smaller groups’ revenue also went up, they can no longer compete with the considerable resources of the top
ten shipping companies. The return to "normal" freight rates and the slowdown in demand in 2023 could further hamper smaller
groups, which could lead to further consolidation.
• The digitalisation of containerised trade is also underway and could significantly improve the industry's supply chain. It is
expected to optimise fleet management, better control costs and speed up delivery processes, and appears to be a necessary
step to attract the e-commerce giants. Leaders are also diversifying into logistics in order to improve the quality and efficiency
of their transport services.
• New environmental regulations are forcing shipping groups to decarbonise their business, notably by greening their fleet and
producing alternative fuels. However, this requires substantial investments. This situation could benefit the leaders to the
detriment of smaller shipping groups.

1.2 Key Slides Global trade and GDP growth
The gradual deterioration of the global economic situation in 2022

hinders international trade growth prospects
Annual growth of global trade and real GDP (2007-2022e)
Unit: % of annual changes in world trade volume and world GDP
Global trade Global GDP

25%
For many years, trade growth outpaced GDP growth ... but this changed between 2012 and 2016, when The years Tensions The economic
due to trade liberalisation and globalisation global merchandise trade growth was almost 2017 and between China recovery is
(outsourcing and the creation of complex global equal to (or less than) GDP growth for the first 2018 saw a and the United underway by
20% supply chains)... time in 15 years slight States, the 2021, creating a
recovery, with widespread strong rebound
trade growth economic in global trade
15% again uncertainty in
outpacing 2019 and the
GDP growth. Covid-19 crisis in
2020 weighed
10% heavily on
growth.
5%
0%
The gradual
deterioration of
This contraction can be attributed to several
the economic
-5% factors: the shortening of global value chains; the
situation
slowdown in trade liberalisation and the rise of
negatively
protectionism; China's economic slowdown and
affected global
the reorientation of its economy towards its
-10% domestic market; and even the growth of digital
GDP and global
trade in 2022
economies.
-15%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e
Processing and forecasts: Xerfi Global / Sources: IMF

1.2 Key Slides Maritime demand and container supply
Demand exceeded supply in 2021 after several years of overcapacity

Growth in demand and supply of maritime container transport (2007-2022)
Unit: growth in % of removals expressed in TEU for demand and of overall capacity for supply
Demand Supply
20%
15%
10%
5%
0%
-5%
-10%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e
Calculations : Xerfi Global / Source and estimate: UNCTAD
The container shipping industry has been struggling in recent years, due to a persistent market imbalance between trade and
fleet capacity supply, which intensified mega-ships inflows, increased trade tensions as well as changing environmental
regulations. These factors increased the volatility of freight rates and transport costs since 2018 and resulted in a slowdown in
demand between 2017 and 2019. This situation deteriorated with the health crisis, which led to a decline of shipping demand,
thus rising prices. The global economic recovery of 2021 and the disruptions in supply chains allowed for an increase in demand
for ship transport (+11.0%) despite a surge in freight rates. Supply also increased as new vessels were purchased by
international shipping groups. The unfavourable economic and political context of 2022 reversed the trend, with supply now
exceeding demand.

1.2 Key Slides Freight rates
Sea freight soared in 2021... then sharply fell from September 2022
Harpex freight rates (2016-October 2022)

Unit: index (monthly averages)
5 200
4 700
4 200
3 700
3 200
2 700
2 200
1 700
1 200
700
200
2016 2017 2018 2019 2020 2021 2022
Calculations : Xerfi Global / Source: Harper Petersen
Containerised maritime freight rates impressively surged in 2021 (+287% according to the Harpex index) as costs were
multiplied by seven between March 2020 and March 2022. This situation can be explained partly by the successive crises of the
last two years (health crisis, labour shortage, port congestion, container shortage, blockage of the Suez Canal, etc.) which
gradually pushed up maritime transport prices. All these disruptions made maritime supply scarce, which necessarily caused
prices to soar.
However, improvements in supply chains and international trade will allow sea freight rates to normalise to a satisfactory level in
2023. Between August and November 2022, the Harpex index fell by 68% but could remain at a high level in the short term.

1.2 Key Slides Two possible scenarios for 2023/2024
Two possible scenarios after the atypical 2021-2022 years
The unfavourable economic situation expected in 2023, the end of global port congestion and the aftermath
of the energy crisis will have a negative impact on the shipping industry
Scenario 1 Scenario 2
Return of maritime freight rates to pre-crisis levels Ocean freight rates remain at high levels, around
(Harpex index between 600 points and 700 points) 1,200 Harpex index points
Volumes to be transported are still important in the

Very low global economic growth, which leads to a
maritime sector because of the attractive prices
lower demand for containers
compared to other modes of transport
Excess of capacity: too many ships for the volumes Transport capacity utilisation at its maximum,
to be transported persistent imbalance with a supply deficit
Shipping companies' revenues are still 20% higher

Shipping companies' revenues normalise
than before the health crisis
Source: Xerfi Global

1.2 Key Slides Main shipping routes
Most containers go through the Asia-America route,

followed closely by the Asia-Europe route
Containerised trade on major routes in 2019 Containerised trade on major routes in 2021
Unit: million TEU Unit: million TEU
6.8 7.1
Europe Europe
North North
America America
Asia Asia
19.9 24.1
Source: UNCTAD Source: UNCTAD
The Asia to North America and Asia to Europe routes are the main routes for containerised cargo. These three regions dominate
international trade by volume and value, with China as the world's largest exporter, the United States as the world's largest
importer and the European Union as the world's largest economy. Thus, Asia sends more containers than it receives, while
Europe and North America import more containers.

1.2 Key Slides Port traffic
Asia accounts for almost two thirds of container traffic

Container port traffic by region (2019) Container port traffic by region (2020)
Unit: share of TEUs handled worldwide Unit: share of TEUs handled worldwide
Europe Europe
North North
Asia Asia
America America
14.9% 14.4%
7.6% 7.5%
64.8% 65.3%
Latin 3.9% Latin 4.0%

America 7.3% America 7.2%
and Africa 1.5% and Africa 1.6%
Caribbean Caribbean
Oceania Oceania
Asia will account for almost two thirds of global container traffic in 2020. Several Asian countries produce goods for the whole
world. This is particularly true for China, which is known as the "World’s factory", but also for countries such as India, Thailand,
Indonesia, etc., where the major international groups have set up their factories (Adidas, Nike, etc.).

1.2 Key Slides Environmental regulation
The shipping industry is facing increasingly strict environmental regulations
Main environmental regulations affecting the shipbuilding industry (2017-2022)
IMO (International Maritime

IMO (International Maritime Organisation) establishes EEXI:
Water management Organisation) 2020: From 1st January 2023, all ships are
Mandatory installation of ballast Sulphur oxide emissions from ships required to calculate their existing
water treatment systems were limited to 0.5% m/m compared energy efficiency index (EEXI) and thus
to 3.5% previously implement strategies to meet the 30%
carbon reduction by 2030
2050 :
Sept January January Oct January -80%
2017 2018 2020 2022 2023 carbon
emissions
Minimum percentage use of green fuels by

Monitoring, reporting and verification (EU):
2023 (EU) :
Ships over 5,000 gross tonnes loading and
The European Parliament passed a law
unloading cargo or embarking and
requiring ship owners to use a minimum
disembarking passengers in EEA ports must
percentage of green hydrogen-derived fuels
monitor and report, among other things,
by 2030. Ships of less than 5,000 tonnes are
their CO2 emissions.
exempted.

1.2 Key Slides Business strategies
Key strategies: maritime capacity building and diversification in logistics

Overview of shipping companies’ main strategies
Strengthening its maritime capabilities Digitalising the business

 Expansion of the fleet  Digitisation of control platforms
 Purchase of containers  Launch of new innovations
 Opening of new lines  Partnering with/buying innovative start-ups
4 main axes
Diversifying into logistics Decarbonising activity

 Manage the entire supply chain from order to  Greening the fleet
receipt  Implementation of new solutions (less polluting
 Becoming a multimodal and intermodal hulls, speed reduction, etc.)
and intermodal carrier  Investment in alternative fuels
 Acquisition of logistics companies

1.2 Key Slides Leaders’ operating profit rate
Shipping companies’ EBIT ratio reached a record high in 2021

Aggregate EBIT and EBIT ratio of the analysed groups EBIT and EBIT ratios of the analysed groups
(2018-2021) (*) (2021 vs average 2015-2020) (*)
Unit: billion euros, aggregated EBIT divided by aggregated revenue in %. Unit: EBIT divided by revenue in %.
120 000 45% EBIT rate 2021 Average EBIT rate 2015-2020
40% Yang Ming 60,4%
0,5%
100 000
Evergreen 58,2%
35% 3,4%
ONE 56,5%
80 000 +529.2% 30% 8,6%
HMM 53,5%
-5,3%
25%
60 000 ZIM 52,8%
1,7%
20% 43,8%
OOIL 5,3%
40 000 15% Hapag-Lloyd 42,2%
5,5%
10% COSCO 38,4%
4,8%
20 000
5% CMA CGM 35,0%
5,6%
Maersk 31,8%
0 0% 3,6%
2018 2019 2020 2021 -20% 0% 20% 40% 60% 80%
(*) No history before 2018 due to consolidated data not available for ONE / Source: Xerfi (*) For ONE, the average EBIT ratio is for the period 2018-2020
Global, according to operators Source: Xerfi Global, according to operators
The operating result of the maritime industry reached a record level in 2021 (EBIT ratio at 42.2% for the analysed groups, an
improvement of 29.6 percentage points compared to 2020). This is mainly due to the strong increase in ocean freight rates
caused by excess demand and disruptions in global supply chains. This very good year in 2021 is reflected, for instance, in the
accounts of the South Korean shipping company HMM, which posted an EBIT rate of 53.5% compared to an average of -5.3%
for the period 2015-2020. Maersk and CMA CGM generated slightly lower operating margins of around 35%. Both groups have
an overall more diversified business. Shipping accounts for between 75% and 80% of their revenues, compared with over 90%
for the other groups.

1.2 Key Slides Key performance indicators (1/3)
The three largest maritime transport groups experienced strong growth,

further increasing their already significant market share in the industry
Key performance indicators and growth drivers of the world's leading shipping companies
AVERAGE EBIT
CONSOLIDATED CAGR EBIT RATIO
COMPANIES RATIO KEY DRIVERS OF GROWTH AND PROFIT
REVENUE (2015-2020) (2021)
(2015-2020)
•Revenues increased by 55.5% in 2021 compared to 2020, mainly due to

the strong increase in ocean freight rates but also due to the recovery in
€52 206m international trade. Revenues in the shipping division jumped by 64.5%
MAERSK -0.3% 31.8% 3.7%
(2021) in 2021.
•Thus, EBIT has been multiplied by 8 to reach an EBIT ratio of 31.8% in
2021 compared to 3.7% on average over the period.
•CMA CGM's strong growth in business (+78%) was driven by a sharp

rise in ocean freight rates as well as increased container volumes.
€47 295m
CMA CGM 14.9% 35.0% 5.6% Revenues in the shipping business increased by 88.5%.
(2021) •Thus, the EBIT ratio reached 35.0% in 2021 compared to 5.6% on
average over the period.
•By the end of 2021, COSCO's revenues increased by 95%. This is due to
the strong growth of the "Container Transport" business line, whose
COSCO
€43 711m revenues doubled in 2021 (high freight rates and increased volumes
SHIPPING 24.4% 38.4% 4.8%
(2021) transported).
HOLDINGS (*) •As a result, its EBIT has been multiplied by 9 to reach an EBIT ratio of
38.4% in 2021 (4.8% in the average period).
ORIENT •OOIL revenues doubled in 2021 (increased freight rates and volumes
OVERSEAS €14 221m carried).
6.6% 43.8% 5.3%
INTERNATIONAL (2021) •Thus, the group's EBIT has been multiplied by 8 to reach an EBIT ratio of
(*) 43.8% in 2021 (compared to 5.3% on average over the period).
(*) COSCO acquired Orient Overseas International Group in 2018, however, they have not merged their financial reports. Thus, these two groups are presented separately
due to their significant weight / Source: Xerfi Global, according to operators

Outstanding financial results for the leading maritime transport groups

AVERAGE EBIT
REVENUE (2015-2020) (2021)
(2015-2020)
•Revenue of the 3 Japanese shipping companies’ alliance doubled in

March 2022, growing by 42% for NYK Lines, 28% for MOL and 21% for K
OCEAN 4.9%
€25 693m 56.5% 8.6% Line. This is mainly due to the higher revenue of their shipping divisions
NETWORK (2019-
(31/03/2022) (31/03/22) (2019-2021) thanks to the rise in freight rates and volumes carried.
EXPRESS 2021) •Thus, the EBIT ratio reached 56.5% in March 2022 compared to 8.6% on
•At the end of FY 2021, Hapag-Lloyd's revenue rose strongly, by 74.4%,

due to a very prolific shipping market (rapid rise in freight rates and
€22 274m
HAPAG-LLOYD 7.6% 42.2% 5.5% increase in transported volumes with the global economic recovery).
(2021) •Thus, EBIT has been multiplied by 7 in 2021 to reach an EBIT ratio of
42.2% (compared to 5.5% on average over the period).
•The group's revenues more than doubled in 2021 (+136%), mainly due
to shipping, where freight rates have risen sharply as a result of supply
€14 823m
EVERGREEN 9.1% 58.2% 3.4% chain disruptions and strong demand.
(2021) •As a result, EBIT has increased by a factor of 8 in 2021 to reach an EBIT
ratio of 58.2% (compared to 3.4% for the average period).
Source: Xerfi Global, according to operators

Shipping groups that were struggling benefited from a favourable economic

context in 2021, allowing them to financially recover
AVERAGE EBIT
REVENUE (2015-2020) (2021)
(2015-2020)
•HMM's revenue jumped by 168.8% in 2021 thanks to its container ship

division (+130%). Shipping benefited from a strong price effect due to
HYUNDAI
€10 188m the economic recovery and supply chain disruptions that created excess
MERCHANT 2.6% 53.5% -4.3%
(2021) demand.
MARINE •Thus, while HMM had a negative EBIT ratio over the average period, it
nonetheless reached 53.5% in 2021.
•Yang Ming's significant growth (+122.7%) was mainly supported by its

"Container" business. Maritime transport benefited from excess demand
€10 203m (disruptions in supply chains for an increase in overall demand), which
YANG MING 3.5% 60.4% 0.5%
(2021) created a significant price effect.
•Thus, EBIT has been multiplied by 10 in 2021 to reach an EBIT ratio of
•At the end of FY 2021, ZIM's revenue increased by 168.8%. Just like
other shipping companies, this was due to the shipping market which
€9 065m benefited from a strong price effect due to excess demand created by
ZIM 5.9% 52.8% 1.7%
(2021) supply chain disruptions and well-oriented demand.
•As a result, the group's EBIT has been increased tenfold to reach an EBIT
ratio of 52.8% in 2021 (compared to 1.7% on average over the period).

2. Market fundamentals

2.1. Scope of the report
A report focusing on the transport of goods via containers
Sea freight transport can be subdivided into four sub-segments:

- Regular line haulage: this is carried out on a predetermined schedule. It concerns goods in containers,
rolling stock (Ro-Ro vessels) and conventional goods (packages, bags in multipurpose cargo ships).
Industry overview or "Ro-Ro" vessels) and conventional goods (parcels, bags in multipurpose cargo ships);
- Dry bulk transport mainly concerns three types of goods: iron ore, coal and grain;
- Liquid bulk transport concerns crude oil, refined oil products, chemicals and gas;
- The transport of goods via container.
This report conducted by Xerfi Global focuses on the transport of goods via containers. The other segments
Scope of the report
are excluded from the scope of the analysis.
Several factors contributed to the slowdown in maritime traffic growth between 2013 and 2019.
Protectionism and trade tensions, weak demand, and China's refocusing resulted in oversupply. The industry
is now also facing more demanding environmental legislation, which leads to significant costs for carriers.
Deteriorating market conditions and poor financial returns in recent years forces container shipping groups
Industry specifics to consolidate: the combined TEU market share of the top 10 shipping lines rose from 65.2% in 2014 to
84.7% in 2021.
However, the global economic recovery in 2021 and the subsequent disruptions to supply chains greatly
benefited to the industry with record high ocean freight rates.

2.2. Overview Key figures
A highly concentrated market in which leaders’ margins soared in 2021
€165.8bn The value of the global container shipping market in 2021
> 90% The share of global trade in goods transported by sea
The market share of the top ten container shipping companies (in TEU) in November 2022
84.7%
(compared to 65.2% in 2014).
52% Asia's share of maritime transport by value in 2021
41.2% The average EBIT ratio of the groups analysed in 2021 (compared to 3.4% in 2019).
Sources: trade press and operators

2.2. Overview Key trends and characteristics
The activity of transport operators is very dependent on the economic

context and international trade
Maritime transport is strongly linked to macroeconomic trends, as profitability depends to a

An industry that depends on large extent on the level of international trade. Carriers are also facing a restructuring of the
economic conditions, but also supply chain (with more regionalised trade flows), a refocusing of the Chinese economy, and
increasingly on environmental the increasing importance of technology in logistics. In addition, environmental legislation
legislation (notably the new International Maritime Organisation's Low Sulphur Regulation) starts to
have a major impact on the sector.
The growth of emerging markets and globalisation have been the two growth factors for
Globalisation and the growth of
the industry since the invention of the container in the 1960s. The rise of China as a
emerging markets have been
manufacturing centre, the increasing demand for raw materials and the fragmentation of
driving growth for the industry
manufacturing supply chains led to very rapid growth in the period 1980-2007.
The collapse of the container shipping industry between 2013 and 2019 led to a large wave
A highly consolidated industry of consolidation, with market leaders acquiring mid-sized groups, while some key groups -
notably South Korea's Hanjin – stopped their activity.
In addition to mergers and acquisitions, container shipping lines are increasingly entering
Three global alliances into global alliances to benefit from economies of scale, logistics networks and route
predominate optimisation. At present, the industry is dominated by three major alliances: 2M, Ocean
Alliance and THE Alliance.

2.3. Market fundamentals The global trade value chain
The container shipping industry is a vital part of the global trade chain
The global trade chain
Destination country
Transport
Transport
Transport to Maritime to the
Production Customs to the final
the port transport distribution
sale outlet
centre
Country of origin
Shipping companies carry out transport operations on a
maritime route, with ships calling at pre-determined
ports on set dates

2.3. Market fundamentals The different types of maritime transport
This report focuses on containers, which account for more than half
of the maritime transport market
The main maritime transport sectors and their shares by value
Global maritime trade
SPECIALISED LIQUID BULK

DRY BULK CONTAINERS
TRANSPORT 22%
6% 52%
20%
Bulk Minerals
Coal "Roll-on/roll-off" Twenty feet
(cargo that can be Oil and gas
Dry chemicals Forty feet
driven like cars, Liquid chemicals
Dry food Refrigerated
buses and trucks) Liquid food
Minerals Flat grid
Miscellaneous Dry food
Cereals Open roof
(paper, wood, wind Etc.
Livestock Etc.
Etc. turbine parts, etc.)
Source: Xerfi Global, based on World Shipping Council

2.3. Market fundamentals Containers’ characteristics
Containers are standardised to facilitate transport

Characteristics of the global container fleet
Containers all have standardised dimensions...
• Containers used for loading, transporting and unloading goods all have standardised dimensions so
that they can be stacked on ships. Standardisation applies to the global industry, with the International
Organisation for Standardisation (ISO) setting standard sizes for all containers in 1961. 20 and 40-foot
containers are the most commonly used sizes today.
... expressed in twenty feet equivalent units (TEU)
• The 20-foot container is referred to as a 20-foot equivalent unit (TEU). The volume of the cargo as well
as the capacity of the vessel is expressed in TEUs. In today's global container shipping industry,
approximately 26% of the world's container fleet consists of 20-foot containers. Special containers -
e.g. open top, open sided, flat racks and refrigerated - also use these standard dimensions. Flat racks
are used for the transport of ships, vehicles and industrial equipment, while open sides are often used
for vegetables. Open tops are most commonly used for transporting timber and machinery.

2.3. Market fundamentals Shipping industry value chain
Shipping for the transport of goods is the main activity

Shipping industry value chain
SHIPBUILDING
CONTAINER
MANUFACTURE
PURCHASE OF SHIPS
MAIN ACTIVITIES CONTAINER
RENTAL
OF THE SHIPPING
SECONDARY
INDUSTRY
ACTIVITIES
SHIP BROKERAGE
SHIP FINANCING
NAVIGATION
FOR GOODS
TRANSPORTATION
INSURANCE
PORT MANAGEMENT
OIL AND GAS

COMPANIES

2.4. Market fundamentals Ranking by revenue
Global maritime transport leaders (*)

Overview of the world's leading shipping companies
Consolidated Share of global TEU
COMPANIES Country revenue (**) capacity in Profile and main activities
(year) November 2022
€52 206m
A.P. Møller - Mærsk 16.3% Maritime transport, logistics, terminals
(2021)
€47 295m
CMA CGM 13.0% Maritime transport, logistics, terminals
(2021)
€43 711m 11.0%

COSCO SHIPPING HOLDINGS (***) Maritime transport, logistics, terminals
(2021) (includes OOIL)
€25 693m
OCEAN NETWORK EXPRESS 5.9% Maritime transport, logistics
(31/03/2022)
€22 274m
HAPAG-LLOYD 6.8% Maritime transport, logistics
(2021)
€14 823m
EVERGREEN MARINE CORP 6.3% Maritime transport
(2021)
€14 222m
ORIENT OVERSEAS INTERNATIONAL (***) (2021)
Maritime transport, logistics
€10 188m
HYUNDAI MERCHANT MARINE 3.1% Maritime transport, logistics
(2021)
€10 203m
YANG MING 2.7% Maritime transport
(2021)
€9 065m
ZIM 2.6% Maritime transport
(2021)
(*) This list excludes groups who do not communicate their consolidated accounts such as the Swiss group MSC (17.5% of total TEU capacity in November 2022 and an
estimated revenue of €60bn in 2021) / (**) The consolidated turnover of the leaders also includes activities other than shipping such as CMA CGM which generates 20%
of its revenues in logistics / (***) COSCO acquired the Orient Overseas International group in 2018, however, they have not merged their financial reports. Thus, these two
groups are presented separately due to their significant weight / Source: Xerfi Global, according to operators

3. The market and
leaders' activity

3.1. Sectoral
environment

3.1.1. Overview PESTEL analysis
Environmental issues as well as the political and economic situation are the
main risk factors for the maritime industry
PESTEL analysis of the global shipping market environment
POSITIVE NEGATIVE
IMPACT
PP
• Rising anti-globalisation sentiment
• State subsidies support demand and Geopolitical tensions (war in Ukraine)
olitics - +
•
supply • Growing protectionism
OLITICAL • Interconnected trade policies • Measures to combat Covid-19
EE co
CONOMIC
• Global outsourcing
• Fragmentation of the supply chain
• Economic and trade slowdown due to
difficult and uncertain economic conditions - +
SS
• Global population growth • Intensified local purchasing
ociety
OCIAL
• Urbanisation
• Growing importance of e-commerce
• Increasing customer expectations for fast,
personalised and inexpensive delivery
- +
TTechn
ECHNOLOGICAL
• New technologies (AI, IoT, automated
vehicles, etc.) increase efficiency (faster
order taking, more frequent trips, etc.)
• Underdeveloped transport infrastructure
• Potential (but limited) threat of 3D printing
• Digitisation of certain physical objects
- +
EE • Green logistics provides growth • High carbon footprint, especially for to fuel
cology
NVIRONMENTAL
opportunities
• Circular economies boost reverse logistics
oil
• Unfavourable weather conditions may - +
affect transport
LL
• Safety and security regulations
EGAL
s leg • Nothing to report
•
•
Antitrust regulation
Health regulations - +
• Environmental regulations

3.1.2. Public authorities PESTEL analysis
A complicated political and economic situation in 2022

with no more optimistic outlook for 2023
After about four decades of rapid expansion of free trade, the trend towards globalisation
Even before the 2020 health crisis, has taken a major turn. Protectionistm gained in popularity in recent years, particularly in
growing protectionism and the United States. Furthermore, global geopolitical tensions have been on the rise: in
geopolitical tensions were addition to the trade war between the US and China, there are hot spots in the Korean
dampening trade growth peninsula, the South China Sea, the Middle East and Europe with the war in Ukraine.
prospects These dynamics pose a major risk to the growth of world trade and undermine maritime
transport.
The Covid-19 pandemic caused a profound disruption to global trade, affecting both the
supply and demand sides of the world economy. Global supply chains have been
undermined, challenging global distribution systems and prompting a desire to repatriate
production over the long term.
The health crisis, the stalemate
The political crisis (war in Ukraine) and the economic crisis (unfavourable economic
of the war in Ukraine and the
climate) of 2022 prompted governments to pursue protectionist policies, which resulted
unfavourable economic situation
in a decrease global trade compared to GDP. Indeed, the stalemate in the Russian-
are pushing governments to
Ukrainian war highlighted the limits of international trade: airspace bans, closed ports in
introduce protectionist policies
Ukraine, etc. In addition, the growing decoupling of the US and China, i.e. the separation
of the global economy into two rival spaces, implies various changes in world trade,
especially for multinational companies. Finally, the European Union's policy of "strategic
autonomy" aims to build a territory that is economically independent of other territories.

3.1.3. Economy Global trade and GDP growth
The gradual deterioration of the global economic situation in 2022

hinders international trade growth prospects
Annual growth of global trade and real GDP (2007-2022e)
Unit: % of annual changes in world trade volume and world GDP
Global trade Global GDP

25%
For many years, trade growth outpaced GDP growth ... but this changed between 2012 and 2016, when The years Tensions The economic
due to trade liberalisation and globalisation global merchandise trade growth was almost 2017 and between China recovery is
(outsourcing and the creation of complex global equal to (or less than) GDP growth for the first 2018 saw a and the United underway by
20% supply chains)... time in 15 years slight States, the 2021, creating a
recovery, with widespread strong rebound
trade growth economic in global trade
15% again uncertainty in
outpacing 2019 and the
GDP growth. Covid-19 crisis in
2020 weighed
10% heavily on
growth.
5%
0%
The gradual
deterioration of
This contraction can be attributed to several
the economic
-5% factors: the shortening of global value chains; the
situation
slowdown in trade liberalisation and the rise of
negatively
protectionism; China's economic slowdown and
affected global
the reorientation of its economy towards its
-10% domestic market; and even the growth of digital
GDP and global
trade in 2022
economies.
-15%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e
Processing and forecasts: Xerfi Global / Sources: IMF

3.1.3. Economy GDP and maritime transport

Demand Supply
20%
15%
10%
5%
0%
-5%
-10%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e
exceeding demand.

3.1.3 Economy World trade
In 2021, global exports in value recovered after a complicated 2020 year

Global export growth by value over the period 2007-2021
Unit: billion euros
28000
23 753
24000
20000 18 557
16 364 16 751
15 546 15 321
16000 14 307 14 198 14 188 14 786 14 383
13 027
10 878 11 367
12000 10 074
8 878
8000
4000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e
Source: Intracen
Global exports by value have shown a rather positive trend between 2016 and 2019, momentarily halted by the disease crisis.
The normalisation of the sanitary situation has allowed a clear recovery in international trade, with world exports increasing by
21% in value in 2021. Large shipping groups, who are very dependent on the dynamism of exports, benefited from this
situation. In addition, the various disruptions in supply chains (mainly caused by the health crisis) led to a strong price effect for
shipping operators (demand being higher than supply).

3.1.3 Economy World trade by country
China is the largest exporter but the US recently picked up

Share of the 10 largest exporting countries between
Quarterly evolution of exports in terms of value in 6 countries
2019 and 2021
Unit: share of total exports by value Unit: value index, base 100 in Q3 2017
United States Germany Netherlands
20% Japan South Korea China
2019 2021 170
15,3%
16%
13,3% 150
12%
8,8% 130
7,9%
8,0%
8% 7,4%
110
3,8% 3,2% 3,1%
4% 3,5% 3,1% 2,9% 2,9% 2,9% 3,0% 2,5%
2,9% 2,7% 2,6% 2,4%
90
0%
70
T3 2017
T4 2017
T1 2018
T2 2018
T3 2018
T4 2018
T1 2019
T2 2019
T3 2019
T4 2019
T1 2020
T2 2020
T3 2020
T4 2020
T1 2021
T2 2021
T3 2021
T4 2021
T1 2022
T2 2022
Source: Intracen Source: Intracen and National Bureau of Statistics of China
China consolidated its position as the world's leading exporter by concentrating 15.3% of exports in terms of value in 2021.
This situation is explained by the strong Chinese economic recovery (+8.1% in 2021) but above all by the fact that this country
brings together a significant number of stages in the value chain. Conversely, the United States and most European countries
lost market share in 2021, due to a deeper and persistent health crisis. However, these countries were more dynamic in the first
half of 2022, thanks in particular to the normalisation of the health situation and the increasing recovery of supply chains.
The United States stands out with a 33.1% increase in the first half of 2022 compared to the first half of 2021, due to the strong
LNG price effect.

3.1.3 Economy World trade by country
Imports reached record levels in the major economies

Share of the 10 largest importing countries between
Quarterly evolution of imports in terms of value in 6 countries
2019 and 2021
Unit: share of total imports Unit: index base 100 in Q4 2017
United States Germany Netherlands
16% Japan France China
13,4% 2019 2021 170
13,2%
12,0%
12% 10,8% 150
8% 6,5%
130
6,4%
3,2% 3,4% 3,6% 110
3,8% 2,8% 2,8% 2,6%
4% 3,5% 3,0% 3,2% 3,1%
2,7% 2,6% 2,5%
90
0%
70
T4 2017
T1 2018
T2 2018
T3 2018
T4 2018
T1 2019
T2 2019
T3 2019
T4 2019
T1 2020
T2 2020
T3 2020
T4 2020
T1 2021
T2 2021
T3 2021
T4 2021
T1 2022
T2 2022
Source: Intracen Source: Intracen and National Bureau of Statistics of China
The United States remained the world's largest importer in 2021. It is the world's largest importer of goods (raw materials,
energy, cars and computers). For its part, China has come close to the American level by concentrating 12% of total imports in
2021 (+1.2 percentage points compared to 2019). This territory accounts for more than half of international trade in goods and
has benefited from the global rise in prices in 2021, pushing up the value of imports.
The other countries, especially in Europe, suffered further from the disease crisis in 2021 (various lockdowns, restrictions, etc.),
which resulted in a very slight decline on average in their shares of total exports.

3.1.3 Economy World trade by major product category
Pharmaceutical products and electronic products,

two very dynamic export markets
Evolution of world exports by value for the 5 main product categories
Unit: index base 100 2007
300
Global exports of pharmaceuticals
rose sharply in 2021, in part due to
the health crisis, which increased the
need for medicines and the 250
distribution of vaccines.
Trade flows of electronic products
surged due to strong demand and
rising prices. 200
Exports of mechanical appliances,
vehicles and fuels, on the other hand,
are struggling to recover due to still
lacklustre demand. 150
100
Electrical machinery and equipment; sound recorders
and reproducers, televisions...
Machinery, mechanical devices, nuclear reactors, boilers;
etc. 50
Mineral fuels, mineral oils and products of their
distillation; bituminous substances; minerals
Vehicles other than railway or tramway rolling stock, and
parts and accessories thereof
Pharmaceutical products 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Calculations : Xerfi Global / Source: Intracen

3.1.4. Society and technology Ecommerce
E-commerce, a growing driver of maritime transport
The strong growth of e-commerce Share of online retail* in total retail sales (2014-2025)
worldwide largely supported the Unit: share of total in %.
growth of parcel flows. This growth
can be observed in all transport
25%
sectors: air, road and sea.
Global online sales accounted for

19.7% of total retail sales in 2021
compared to 6.3% in 2014. This 20%
growth was clearly accelerated by the
health crisis in 2020, which forced
companies and individuals to trade
via the internet. This share is expected 15%
to continue to grow in upcoming
years.
While the e-commerce industry 10%

favours land and air routes for speed,
it is also turning to maritime routes as
they allow for massive storage
capacities. Moreover, shipping groups 5%
are investing heavily in the
development of warehouses in order
to be able to respond more quickly to
customers' needs. According to 0%
UNCTAD, the volume of goods sold 2014 2015 2016 2017 2018 2019 2020 2021 2022e 2023p 2024p 2025p
online and transported by ship will
Source and estimates: eMarketer. *Excludes travel and event tickets, bill payment, restaurant services and
increase over the next few years. gambling

3.1.5. Legislation and Ecology Overview
New environmental regulations create additional costs for the industry
Although shipping generates a relatively low level of pollutants compared to other forms of transport and
new ships are more energy efficient, the shipping industry remains under pressure to become less polluting.
The implementation of IMO's 2020 regulation, which imposes a cap on the sulphur content in bunker fuels,
implies new challenges for the shipping industry, particularly for container shipping. It is estimated that the
costs to the container shipping sector of meeting the IMO 2020 mandate will be between $5bn and tens of
The entry into force of
billions of dollars. The increased costs would mainly reflect higher fuel prices and investments in compliance.
the various IMO
This additional cost may have an impact on the price to be paid by end-users in the form of bunker
regulations since 2020
surcharges, as carriers will seek to pass on the increased costs to shippers.
leads to new challenges
In parallel, from 1st January 2023, shipping companies will be forced to measure their energy efficiency index
(EEXI) for existing ships. Depending on the results, operators will have a greater incentive to invest in
decarbonising their business if they wish to meet the IMO's target of a 30% reduction in carbon emissions by
2030.
Digitalisation can New digital technologies are being implemented in the industry, particularly to optimise fuel consumption
improve shipping and performance management. While these solutions entail short-term costs, they have the potential to
companies’ efficiency increase shipping’s competitiveness in the long run.

3.1.5. Legislation and Ecology Environmental regulation
The shipping industry is facing increasingly strict environmental regulations
Main environmental regulations affecting the shipbuilding industry (2017-2022)
IMO (International Maritime

IMO (International Maritime Organisation) establishes EEXI:
Water management Organisation) 2020: From 1st January 2023, all ships are
Mandatory installation of ballast Sulphur oxide emissions from ships required to calculate their existing
water treatment systems were limited to 0.5% m/m compared energy efficiency index (EEXI) and thus
to 3.5% previously implement strategies to meet the 30%
carbon reduction by 2030
2050 :
Sept January January Oct January -80%
2017 2018 2020 2022 2023 carbon
emissions
Minimum percentage use of green fuels by

Monitoring, reporting and verification (EU):
2023 (EU) :
Ships over 5,000 gross tonnes loading and
The European Parliament passed a law
unloading cargo or embarking and
requiring ship owners to use a minimum
disembarking passengers in EEA ports must
percentage of green hydrogen-derived fuels
monitor and report, among other things,
by 2030. Ships of less than 5,000 tonnes are
their CO2 emissions.
exempted.

3.1.5. Legislation and Ecology Speed under pressure
Speed has a strong impact on fuel consumption

of container ships
Fuel consumption by size and speed of container ship
Units: speed in knots (x-axis), fuel consumption in tonnes per day (y-axis)
400
Very slow Slow spraying
spraying Normal speed
350 4,000 - 5,000 TEU
300 5,000 - 6,000 TEU
250
7,000 - 8,000 TEU
200
150 8,000 - 9,000 TEU
100
9,000 - 10,000 TEU
50
10,000+ TEU
0
17 18 19 20 21 22 23 24 25
Calculations : Xerfi Global / Source: The Geography of Transport Systems
Container ships’ fuel consumption depends on their speed and size. A ship with a capacity of between 4,000 and 5,000 TEU will
consume around 150 tonnes of fuel per day at a speed of 25 knots, compared with almost 320 tonnes of fuel per day for a ship
of over 10,000 TEU. Consequently, shipping groups are highly encouraged to reduce the overall speed of their fleet by the IMO
and the various governments (since the 2019 G7). Some of them, such as Maersk and CMA CGM, already announced a
reduction in the speed of their vessels on certain shipping lines, particularly the largest ones. This reduces both their carbon
footprint and fuel costs. However, this decision increases the travel time of container ships, which could work against them, in
favour of other faster modes of transport such as air.

3.2. The global shipping
market

3.2.1. The global maritime container market Maritime demand and container supply

Demand Supply
20%
15%
10%
5%
0%
-5%
-10%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e
exceeding demand.

3.2.1. The global maritime container market The freight rate
Sea freight soared in 2021... then sharply fell from September 2022
Harpex freight rates (2016-October 2022)

Unit: index (monthly averages)
5 200
4 700
4 200
3 700
3 200
2 700
2 200
1 700
1 200
700
200
2016 2017 2018 2019 2020 2021 2022
Calculations : Xerfi Global / Source: Harper Petersen
Containerised maritime freight rates impressively surged in 2021 (+287% according to the Harpex index) as costs were
multiplied by seven between March 2020 and March 2022. This situation can be explained in part by the successive crises of the
last two years (health crisis, labour shortage, port congestion, container shortage, blockage of the Suez Canal, etc.) which
gradually pushed up maritime transport prices. All these disruptions made maritime supply scarce, which necessarily caused
prices to soar.
However, improvements in supply chains and international trade will allow sea freight rates to normalise to a satisfactory level in
2023. Between August and November 2022, the Harpex index fell by 68% but could remain at a high level in the short term.

3.2.1. The global maritime container market Two scenarios for 2023/2024
Two possible scenarios after the atypical 2021-2022 years
The unfavourable economic situation expected in 2023, the end of global port congestion and the aftermath
of the energy crisis will have a negative impact on the shipping industry
Scenario 1 Scenario 2
Return of maritime freight rates to pre-crisis levels Ocean freight rates remain at high levels, around
(Harpex index between 600 points and 700 points) 1,200 Harpex index points
Volumes to be transported are still important in the

Very low global economic growth, which leads to a
maritime sector because of the attractive prices
lower demand for containers
compared to other modes of transport
Excess of capacity: too many ships for the volumes Transport capacity utilisation at its maximum,
to be transported persistent imbalance with a supply deficit
Shipping companies' revenues are still 20% higher

Shipping companies' revenues normalise
than before the health crisis

3.2.2. Supply-side indicators The world container ship fleet
Maritime transport capacity recently accelerated after remaining stable for

almost a decade
Number of container ships worldwide (2008-2022e)
Unit: number of ships
6 000
5 678
5 375 5 434
5 500 5 304
5 225 5 150 5 198
5 096 5 079 5 101 5 111
4 966
5 000
4 500 4 259
4 000
3 500
3 000
2008 (*) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e (*)
Source: Statista / (*) Alphaliner estimate
- In November 2022, there were 5,678 container ships in the world with a total capacity of 25.86m TEUs.
- Meanwhile, orders for new ships were equivalent to an additional 6.68 million TEUs, or 25.8% of the world fleet's current
capacity.
- In 2021, about 35% of container ships were less than 10 years old and 17% more than 20 years old. The average age was 13.2
years.
- In May 2022, 11.6% of the total fleet capacity was idle compared to an average of 5.4% in 2020.
- In November 2022, weekly capacity on Trans-Pacific routes was 570,914 TEU; 433,982 TEU on Far East-Europe routes; and
173,740 TEU on Trans-Atlantic routes.

3.2.2. Supply-side indicators The average size of the world fleet
Recent container ships (0-9 years) are larger than older ships (10+ years)...
Average size of the world container ship fleet by age (2018-2021)
Unit: age range in years, average vessel size in dwt
100 000 2018 2019 2020 2021
83 122 83 36280 070

78 802
80 000 74 632 73 137
66 050
56 847
60 000
46 897
43 565
43 993 42 345
43 284 40 934
38 031
40 000 34 246
20 186
21 975
18 568 19 579
20 000
0
0-4 ans 5-9 ans 10-14 ans 15-19 ans 20+ ans
Source: UNCTAD
The size of container ships increased greatly over time. The average size of the world fleet aged between 0 and 4 years in 2021
was of 74,632 DWT (deadweight tonnes), almost 4 times larger than for ships over 20 years old (21,975 DWT). This race to
gigantism reflects strategies for economies of scale in a competitive environment.
However, the average size of ships aged 0-4 years decreased in 2021. Shipping companies are progressively introducing
container ships that run (partly) on green fuels. These are smaller in size than the mega-ships powered by traditional fuels.

3.2.2. Supply-side indicators Unit transport cost per TEU
... because shipping companies want to generate economies of scale

Unit transport cost per TEU for vessels of different sizes operating at 85% capacity
Unit: 8,000 TEU = 100
Unit cost index
(8,000 TEU =100)
120
100 -7%
-16%
-19% -21%
80 -26%
-30%
60
40
20
0
8,000 TEU 10,000 TEU 12,000 TEU 13,000 TEU 14,000 TEU 16,000 TEU 18,000 TEU
SHIP SIZE
Source: OECD

3.2.2. Supply-side indicators Break-even point
Since the shipping industry has high fixed costs, capacity utilisation
is the key to profitability
Main cost items in ship operations
Costs / revenues
BREAK-EVEN POINT
Part of the fuel VARIABLE

and stevedoring costs COSTS
Port charges
Most fuel costs

Insurance FIXED
Repayment of interest and principal COSTS
Labour costs
Repair and maintenance
Volume

3.2.2. Supply-side indicators Business cycles in the maritime industry
As a high fixed cost industry, shipping is subject to boom and bust cycles
Cycles in the shipping industry
Trade growth
Adding capacity
slows down
Alignment of supply Increased

and demand overcapacity
EXPANSION SLOWDOWN
Recovery of Lower freight
freight rates rates
Resumption of Fall in new ship

growth in trade orders

3.2.2. Supply-side indicators Order books
Increased recovery in ship orders

Share of orders in the overall commercial ship fleet (2007-2021)
Unit: orders in relation to the fleet in %.
60% 56%
50% 47%
40% 35%
30% 26% 26%

21% 20% 19%
20% 16% 16% 17%
13%
11% 10% 10%
10%
0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Statista
After a lull in orders since 2016, caused mainly by the context of overcapacity, the global order book rose by 7 percentage
points in 2021 to reach 17% of the current fleet. This is due to several factors:
- The new IMO regulations from 2019 onwards that encourage the construction of new ships;
- The replacement of vessels over 20 years old (7% of the 2021 fleet) and over 15 years old (14% of the 2021 fleet);
- Building mega-ships to achieve economies of scale;
- Building environmentally responsible ships;
- Etc.
This upward trend seems to be confirmed in 2022, since in November, 6.68m TEU of container ship capacity was on order, or
25.8% of the current world fleet capacity.

3.2.2. Supply-side indicators Container ships owners
Greece is by far the largest shipping country in terms of capacity

Top 10 shipowning countries in 2021 Top 10 shipowning countries in 2021
Unit: inm DWT (deadweight tonnes) Unit: number of ships
2021 2017 2021 2017

8000
Grèce
7000
Chine 6000
Japon 5000
Singaour 4000
Hong Kong 3000
Allemagne 2000
Corée du Sud 1000
Norvège 0
Bermudes
Royaume-Uni
0 100 200 300 400
Calculations : Xerfi Global / Source: UNCTAD

Millions Calculations : Xerfi Global / Source: UNCTAD
For several years, Greece has been the leading shipowning country in terms of DWT (deadweight tonnes). Its capacity amounted
to 373.4m DWT in 2021 for 4,705 vessels owned. This is in contrast to China, the second largest shipping group, which had
7,318 ships in 2021 with a total capacity of 244.6 million DWT. This is due to the fact that Greece relies more on large vessels
while China has vessels of various sizes.
These container ships are chartered to shipping companies for a fixed period (usually 12 months but can last for more than 5
years as well). During the term of the contract, the operating costs of the vessel, including crew costs, are borne by the owner,
with the exception of fuel, which is paid for by the charterer.

3.2.3. Maritime container traffic Main shipping routes
Most containers go through the Asia-America route,

followed closely by the Asia-Europe route
Containerised trade on major routes in 2019 Containerised trade on major routes in 2021
Unit: million TEU Unit: million TEU
6.8 7.1
Europe Europe
North North
America America
Asia Asia
19.9 24.1
The Asia to North America and Asia to Europe routes are the main routes for containerised cargo. These three regions dominate
international trade by volume and value, with China as the world's largest exporter, the United States as the world's largest
importer and the European Union as the world's largest economy. Thus, Asia sends more containers than it receives, while
Europe and North America import more containers.

3.2.3. Maritime container traffic Port traffic
Asia accounts for almost two thirds of container traffic

Container port traffic by region (2019) Container port traffic by region (2020)
Unit: share of TEUs handled worldwide Unit: share of TEUs handled worldwide
Europe Europe
North North
Asia Asia
America America
14.9% 14.4%
7.6% 7.5%
64.8% 65.3%
Latin 3.9% Latin 4.0%

America 7.3% America 7.2%
and Africa 1.5% and Africa 1.6%
Caribbean Caribbean
Oceania Oceania
Asia will account for almost two thirds of global container traffic in 2020. Several Asian countries produce goods for the whole
world. This is particularly true for China, which is known as the "World’s factory", but also for countries such as India, Thailand,
Indonesia, etc., where the major international groups have set up their factories (Adidas, Nike, etc.).

3.2.3. Maritime container traffic Main world ports
Chinese ports dominate the shipping market with Shanghai as the world's
leading port for container ships
Top 20 global container ports (2021 vs 2019)
Unit: inm TEU
2021 2019
Shanghai
Singapore Proof of the consequent weight of China in
Ningbo-Zhoustan the maritime transport of containers,
Shenzhen 6 Chinese ports occupied the 8 first places
in 2021. As the "World’s factory" and the
Guangzhou-Nansha
largest importer worldwide, China strongly
Quingdao developed its port infrastructures in order
Busan to meet the strong demand for its services.
Tianjin Asia is globally over-represented in this top
Los Angeles
20 with 15 Asian ports. The region stands
out because of the low cost of labour, which
Hong-Kong
encourages global groups to manufacture
Rotterdam their products in this territory. Maritime
Dubai routes are particularly developed between
Port Kelang Asia-North America and Asia-Europe, the
two largest global customers.
Antwerp
Xiamen
Tanjung Pelelas
Kaohsiung
New York
Hambourg
Laem Chabang
0 10 20 30 40 50
Calculations : Xerfi Global / Source: Alphaliner

3.2.3. Maritime container traffic The connectivity index for maritime transport lines
China is by far the most integrated country in the maritime industry

Maritime transport line connectivity index, rankings by country (2021)
Unit: index base 100 China in 2006
Ranking Ranking
Country 2021 2019
The Shipping Line Connectivity Index 2021 2019
measures a country's connectivity to
global maritime networks by taking 1 China 168.5 1 156.0
into account five elements: ships’
number, total container capacity, 2 Singapore 112.2 2 107.1
maximum size, the number of services
and the number of companies 3 South Korea 109.3 3 106.2
deploying container ships.
In 2021, China, whose ports are the 4 United States 99.3 5 90.4
world's main loading points, ranked
first. 5 Malaysia 99.0 4 95.5
In Central and South America,
Panama is the best connected country 6 Hong Kong 92.9 6 90.1
thanks to the Panama Canal, which
has also encouraged the creation of 7 Netherlands 91.3 7 90.0
transhipment ports.
In Africa, Morocco, Egypt and South 8 Spain 90.8 9 85.8
Africa benefit from their geographical
position at the continent’s edges. United
9 90.2 8 87.0
Kingdom
10 Belgium 87.9 10 86.4
Source: Xerfi Global based on UNCTAD

3.3. Activity and
leaders’ performance

3.3.1 Revenue Ranking by revenue
Three groups stand out among leading shipping companies

Ranking of the groups studied according to their consolidated revenue (2021) (*)
Unit: million euros
Maersk, CMA CGM and COSCO Maersk 52 206

Shipping Holdings dominate the
global container shipping market. CMA CGM 47 295
Between them, they account for
COSCO Shipping
40.3% of the world's container ship Holdings
43 711
capacity in TEUs.
Ocean Network
They are investing massively in 25 693
Express
logistics in order to improve their
verticality and thus their final services. Hapag-Lloyd 22 274
This is notably the case for CMA CGM
since the acquisition of CEVA Logistics Evergreen 14 823
in 2019.
Despite the large size of the leading Orient Overseas
14 222
trio, other global shipping groups are International
managing to strengthen their position
Yang Ming 10 203
in this highly concentrated market.
This is notably the case of Ocean Hyundai Marine
Network Express, which groups Merchant
10 188
together the three leaders in Japanese
maritime transport (Nippon Yusen ZIM 9 065
Kaisha, Mitsui O.SK. Lines and
Kawasaki Kisen Kaisha). 0 10000 20000 30000 40000 50000 60000
(*) COSCO acquired Orient Overseas International Group in 2018, however, they did not merge their financial
reports. Thus, these two groups are presented separately due to their significant weight.
The world leader in total capacity MSC is not present in this ranking due to the lack of financial data. According
to the trade press, its revenue amounted to €60bn in 2021

3.3.1 Revenue Evolution of revenue in 2021
Revenues of leading shipping companies almost doubled in 2021

Aggregate revenue of analysed groups (2018-2021) (*) Annual growth of analysed groups in 2021
Unit: billion euros, annual growth in %. Unit: annual change in %.
260 100%
ZIM
240 90%
Evergreen
80%
220 Yang Ming
70%
200 +87% Hyundai…
60%
ONE
180 50%
OOIL
160 40%
COSCO…
30%
140 CMA CGM
20%
120 Hapag-Lloyd
10%
Maersk
100 0%
2018 2019 2020 2021 0% 50% 100% 150% 200%
(*) No history before 2018 due to consolidated data not available for ONE / Source: Xerfi
Global, according to operators
The revenue of the world's leading shipping companies almost doubled in 2021 (+87% on average). This is mainly due to the
strong increase in freight rates (+286.5% for the Harpex index). This record increase was caused by various disruptions in global
supply chains (port congestion, port closures due to lockdowns, etc.) and very strong demand, which created a strong
imbalance.
Among the main shipping groups, ZIM has seen the strongest growth in activity (+168.8% in 2021), followed by Evergreen
(+136.3%) and Yang Ming (+122.7%)

3.3.2 Operating profit rate Operating profit rate of the leaders
Shipping companies’ EBIT ratio reached a record high in 2021

Aggregate EBIT and EBIT ratio of the analysed groups EBIT and EBIT ratios of the analysed groups
(2018-2021) (*) (2021 vs average 2015-2020) (*)
Unit: billion euros, aggregated EBIT divided by aggregated revenue in %. Unit: EBIT divided by revenue in %.
120 000 45% EBIT rate 2021 Average EBIT rate 2015-2020
40% Yang Ming 60,4%
0,5%
100 000
Evergreen 58,2%
35% 3,4%
ONE 56,5%
80 000 +529.2% 30% 8,6%
HMM 53,5%
-5,3%
25%
60 000 ZIM 52,8%
1,7%
20% 43,8%
OOIL 5,3%
40 000 15% Hapag-Lloyd 42,2%
5,5%
10% COSCO 38,4%
4,8%
20 000
5% CMA CGM 35,0%
5,6%
Maersk 31,8%
0 0% 3,6%
2018 2019 2020 2021 -20% 0% 20% 40% 60% 80%
(*) No history before 2018 due to consolidated data not available for ONE / Source: Xerfi (*) For ONE, the average EBIT ratio is for the period 2018-2020
Global, according to operators Source: Xerfi Global, according to operators
The operating result of the maritime industry reached a record level in 2021 (EBIT ratio at 42.2% for the analysed groups, an
improvement of 29.6 percentage points compared to 2020). This is mainly due to the strong increase in ocean freight rates
caused by excess demand and disruptions in global supply chains. This very good year in 2021 is reflected, for instance, in the
accounts of the South Korean group HMM, which posted an EBIT rate of 53.5% compared to an average of -5.3% for the period
2015-2020. Maersk and CMA CGM generated slightly lower operating margins of around 35%. Both groups have an overall
more diversified business. Shipping accounts for between 75% and 80% of their revenues, compared with over 90% for the
other groups.

3.3.3. Activity and individualised performance Key performance indicators (1/3)
The three largest maritime transport groups experienced strong growth,

further increasing their already significant market share in the industry
AVERAGE EBIT
REVENUE (2015-2020) (2021)
(2015-2020)
•Revenues increased by 55.5% in 2021 compared to 2020, mainly due to

the strong increase in ocean freight rates but also due to the recovery in
€52 206m international trade. Revenues in the shipping division jumped by 64.5%
MAERSK -0.3% 31.8% 3.7%
(2021) in 2021.
•Thus, EBIT has been multiplied by 8 to reach an EBIT ratio of 31.8% in
2021 compared to 3.7% on average over the period.
•CMA CGM's strong growth in business (+78%) was driven by a sharp

rise in ocean freight rates as well as increased container volumes.
€47 295m
CMA CGM 14.9% 35.0% 5.6% Revenues in the shipping business increased by 88.5%.
(2021) •Thus, the EBIT ratio reached 35.0% in 2021 compared to 5.6% on
•By the end of 2021, COSCO's revenues increased by 95%. This is due to
the strong growth of the "Container Transport" business line, whose
COSCO
€43 711m revenues doubled in 2021 (high freight rates and increased volumes
SHIPPING 24.4% 38.4% 4.8%
(2021) transported).
HOLDINGS (*) •As a result, its EBIT has been multiplied by 9 to reach an EBIT ratio of
38.4% in 2021 (4.8% in the average period).
ORIENT •OOIL revenues doubled in 2021 (increased freight rates and volumes
OVERSEAS €14 221m carried).
6.6% 43.8% 5.3%
INTERNATIONAL (2021) •Thus, the group's EBIT has been multiplied by 8 to reach an EBIT ratio of
(*) 43.8% in 2021 (compared to 5.3% on average over the period).
(*) COSCO acquired Orient Overseas International Group in 2018, however, they have not merged their financial reports. Thus, these two groups are presented separately
due to their significant weight / Source: Xerfi Global, according to operators

Outstanding financial results for the leading maritime transport groups

AVERAGE EBIT
REVENUE (2015-2020) (2021)
(2015-2020)
•Revenue of the 3 Japanese shipping companies’ alliance doubled in

March 2022, growing by 42% for NYK Lines, 28% for MOL and 21% for K
OCEAN 4.9%
€25 693m 56.5% 8.6% Line. This is mainly due to the higher revenue of their shipping divisions
NETWORK (2019-
(31/03/2022) (31/03/22) (2019-2021) thanks to the rise in freight rates and volumes carried.
EXPRESS 2021) •Thus, the EBIT ratio reached 56.5% in March 2022 compared to 8.6% on
•At the end of FY 2021, Hapag-Lloyd's revenue rose strongly, by 74.4%,

due to a very prolific shipping market (rapid rise in freight rates and
€22 274m
HAPAG-LLOYD 7.6% 42.2% 5.5% increase in transported volumes with the global economic recovery).
(2021) •Thus, EBIT has been multiplied by 7 in 2021 to reach an EBIT ratio of
•The group's revenues more than doubled in 2021 (+136%), mainly due
to shipping, where freight rates have risen sharply as a result of supply
€14 823m
EVERGREEN 9.1% 58.2% 3.4% chain disruptions and strong demand.
(2021) •As a result, EBIT has increased by a factor of 8 in 2021 to reach an EBIT
ratio of 58.2% (compared to 3.4% for the average period).

Shipping groups that were struggling benefited from a favourable economic

context in 2021, allowing them to financially recover
AVERAGE EBIT
REVENUE (2015-2020) (2021)
(2015-2020)
•HMM's revenue jumped by 168.8% in 2021 thanks to its container ship

division (+130%). Shipping benefited from a strong price effect due to
HYUNDAI
€10 188m the economic recovery and supply chain disruptions that created excess
MERCHANT 2.6% 53.5% -4.3%
(2021) demand.
MARINE •Thus, while HMM had a negative EBIT ratio over the average period, it
nonetheless reached 53.5% in 2021.
•Yang Ming's significant growth (+122.7%) was mainly supported by its

"Container" business. Maritime transport benefited from excess demand
€10 203m (disruptions in supply chains for an increase in overall demand), which
YANG MING 3.5% 60.4% 0.5%
(2021) created a significant price effect.
•Thus, EBIT has been multiplied by 10 in 2021 to reach an EBIT ratio of
•At the end of FY 2021, ZIM's revenue increased by 168.8%. Just like
other shipping companies, this was due to the shipping market which
€9 065m benefited from a strong price effect due to excess demand created by
ZIM 5.9% 52.8% 1.7%
(2021) supply chain disruptions and well-oriented demand.
•As a result, the group's EBIT has been increased tenfold to reach an EBIT
ratio of 52.8% in 2021 (compared to 1.7% on average over the period).

4. Competition and
leaders’ strategies

4.1. Competitive environment Overview
An increasingly intense competition

Competitive forces in the global shipping industry
Threat of new Government

entrants influence
+ ++
Bargaining power of
+++ Bargaining power of
suppliers customers
+
rivalry +++
Threat of substitutes How to read this chart:

+ The darker the shading, the
stronger the force

4.1. Competitive environment Intra-competitive competition
The fierce competition forces shipping groups to heavily invest and diversify
• Shipping lines compete on factors such as punctuality, number of ports of

call, route frequency and, most importantly, freight rates. Service
New entrants Government
differentiation is low and price competitiveness remains the number one
+ ++ differentiating factor. This gives the shipping groups with the largest scale
on a given route a clear advantage over their competitors.
Suppliers Customers
+ +++ +++
Rivalry
• Deteriorating market conditions, linked to declining demand and
Substitutes overcapacity in the industry and low financial returns between 2016 and
+
2019, have increased competition between shipping companies and led to a
consolidation movement. The very good financial results of 2021-2022 then
allowed the shipping leaders to invest massively in order to strengthen their
positions in the long term, but also to diversify in order to provide services
with more verticality.

4.1. Competitive environment Intra-sectoral competition
Most shipping groups also offer services for the transport

of dry bulk, tankers, logistics, cruises, etc.
Presence of the maritime groups analysed in transport-related companies
Company Container ship Dry bulk Oil tankers Logistics Ports Cruises
Maersk    
CMA CGM   
COSCO    
ONE      
Hapag Lloyd    
Evergreen   
OIL   
Hyundai Merchant Marine     
YANG MING     
ZIM   
Source: Xerfi Global, based on operators

The combined market share of the top 10 container shipping companies

fell from 65.2% in 2014 to 84.7% in 2022
Market share of the top ten companies by the end of 2022 Market share of the top ten companies at the end of 2014
Unit: share of total market in %. Unit: share of total market in %.
10 major groups Others 10 major groups Others
34,8%
84,7%
15,3%
65,2%
November 2022 December 2014

Source : Alphaliner Source : Alphaliner
Consolidation in container shipping accelerated. The combined market share of the top 10 shipping lines increased from 65.2%
in December 2014 to 84.7% in November 2022 and their total capacity from 12.2m TEU to 22.1 million TEU.
The two very good financial years of 2021 and 2022 accentuated this trend, as the strong increase in leaders’ revenue allowed
them to buy up competitors on a massive scale.

The seas are dominated by three maritime alliances

Maritime alliances
2M Ocean Alliance The Alliance
Strategic
partnership
between 2M
and ZIM
Source: Xerfi Global, based on operators and Alphaliner

All major roads are operated mostly by the three alliances

Transatlantic route market share (September Asia-Europe route market share (September
Transpacific route market share (September 2022) 2022)
2022)
Unit: share of capacity deployed in TEU Unit: share of capacity deployed in TEU
Unit: share of capacity deployed in TEU
2M Alliance Ocean Alliance 2M Alliance Ocean Alliance 2M Alliance Ocean Alliance

The Alliance Others The Alliance Others The Alliance Others
8% 10%
13%
25%
24% 34%
25%
24% 54%
38%
12%
32%
Source : Alphaliner Source : Alphaliner Source : Alphaliner
Container shipping is an increasingly concentrated industry in terms of operations and alliances, vessel commissioning and
major ports of call.
The three alliances (2M Alliance, Ocean Alliance and THE Alliance) dominate the container shipping market and the capacity
deployed on the three main trade routes. They hold 87% of the capacity on the transpacific route, 92% on the transatlantic
route and 90% on the Asia-Europe route.

4.1. Competitive environment Threat of new entrants
High entry costs and high industry concentration keep new entrants at bay...
• The very high entry costs, high concentration of the sector by major shipping lines as
well as the presence of the three alliances, keep the container shipping sector safe
from new entrants.
+ ++ • Perhaps the greatest threat comes from the large global corporations, particularly
those operating in e-commerce such as Amazon or Alibaba, who are increasingly
Suppliers Customers seeking to transport their self-sold goods in order to better control their supply
+ +++ +++
Rivalry
chains. Amazon is a perfect example of this, as in just a few years it has become one
of the world's leading logistics companies. It now owns warehouses, trucks, planes,
Substitutes
+ etc., all over the world. However, the only thing missing from its fleet is ships.
As of now, it acts merely as a coordinator of sea freight shipments, but it could very
well enter this market in the future, especially through external growth. On the other
hand, Alibaba is entering this sector very gradually with the acquisition of a minority
stake in the Transfar Shipping group in October 2021. They then jointly ordered
5 container ships in October 2022 for $650m.
• The threat of e-commerce giants is driving major container shipping companies to implement digitisation strategies to automate
shipping processes and improve cargo tracking. These improvements will enable them to better meet the supply chain expectations of
e-commerce groups.
• The industry is also facing increasing competition from digital start-ups that focus on improving freight transport services. Indeed, these
new companies are creating industry value added that is not controlled by ocean carriers. For instance, digital platforms provide greater
transparency on container freight rates to address structural operating inefficiencies in the industry.

...but new forms of competition are emerging
 E-commerce giants are developing their own logistics services (including transport) in order to reduce costs
and their dependence on logisticians and carriers. Their huge financial resources allow them to become
E-commerce major logistics players.
giants  These new competitors could upset the historical concentration of the maritime transport market in the
medium term.
 Example: Alibaba holds a minority stake in the Transfar Shipping group.
 Customers who export a majority of their goods may want to manage their transport themselves.
This allows them to control the flow (and thus avoid errors during transport) but also to shorten the
Clients duration of shipments. Indeed, they do not have to make several stopovers, unlike shipping companies who
integrating part deliver for several different customers.
of the logistics  There is a risk that shipping companies will lose some customers. However, this should remain marginal.
These are mainly flows carried out by customers on their own account.
 Example: Lidl set up its own shipping company "Tailwind Shipping Lines" in April 2022.
 Port operators are also diversifying into maritime transport. Indeed, the latter manage the entry and exit
points of maritime freight, and by adding container ship transport, they will be able to create a very
competitive synergy within the maritime industry.
 This may result in the loss of customers for the shipping lines, but also in a weakening of their partnership
Port operators with some ports. However, shipping groups are ahead of the game, as some of them have taken control of
some terminals or have acquired stakes. This is notably the case of Cosco.
 Example: Shanghai International Port Group has created its subsidiary dedicated to maritime transport
"Shanghai Jin Jiang" which was ranked 35th among global maritime transporters in November 2022.

Some customers could break away from historical groups
 Lidl entered the shipping market in April 2022 with its new
subsidiary Tailwind Shipping Lines (TSL).
 This division should enable the group to reduce its
dependence on the historical shipping groups and their
pricing.
 The introduction of TSL gives the group greater flexibility
and control over the volumes produced at its production
sites.
 Shipments also accelerated.
 In 2022, the group had a container ship purchased for
$110m and 2 other vessels leased for 1 year.
 Alibaba entered the shipping market in October 2021 by

acquiring a minority stake in Chinese shipping company
Transfar Sipping.
 This investment allows the company to reduce its
dependence on incumbent carriers but also to benefit from
more personalised services such as the routes taken, the
duration of shipments, prices, etc.
 In October 2022, Alibaba and Transfar Shipping ordered five
8,000 TEU container ships for $650m.

4.1. Competitive environment Government's influence
The government continues to financially support the industry
• Government intervention in the container trade sector reflects the strategic

importance of the sector, particularly for export-oriented Asian economies such
New entrants Government as China, South Korea and Japan. In 2017, for instance, Hyundai Merchant Marine
+ ++
received a €550m bailout from the South Korean government as well as an
additional €4bn of government funding to acquire megaships, the latter to help
Suppliers Customers
+ +++ +++ the company better compete with Asian and European rivals. In 2022, the Indian
Rivalry
government provided $20.1m to build 47 Hindi container ships by 2023.
Substitutes
+
• International organisations, the International Maritime Organisation (IMO) in
particular, are having an increasing impact on the industry, particularly with
regard to reducing greenhouse gas emissions. Indeed, the IMO sets the roadmap
for the world's shipping companies to follow.

4.1. Competitive environment Bargaining power of customers
In a context of intense intra-sectoral competition,

customers have a high bargaining power
• A customer's choice of carrier has traditionally been made on the basis of price,
New entrants Government time, destination and trust. The limited differentiation of services allows
+ ++
customers to switch easily between shipping companies. Electronic
communications also reduced information asymmetry, allowing customers to
Suppliers Customers
+ +++ +++ easily compare freight rates between carriers, which has further enhanced price
Rivalry
competition. Customers therefore have strong bargaining power.
Substitutes
+
• Customers in the container shipping sector are either importers, exporters,
clearing agents, freight forwarders or manufacturers of goods. Shipping
companies therefore have a very broad customer base. While shipping companies
operate in most sectors (manufacturing, retail, freight, etc.), they mainly deal with
intermediaries such as regional and global logistics companies (DHL, FedEx, etc.),
brokers, etc.
• Before the health crisis, shipping companies were focused on improving their short-term profitability (lower ship speed, smaller crews,
etc.), often at the expense of the quality of service offered to customers. Now they are investing heavily in improving the customer
experience. Indeed, shipping groups are progressively becoming logistics providers by placing the needs of their clients at the centre of
their services (speed, price, capacity, follow-up, etc.). They are investing in the digitalisation of their processes.

4.1. Competitive environment Bargaining power of suppliers
While shipbuyers have significant bargaining power, fleet renewal in favour

of green containerships could change the game
• As demand for ships fell in recent years, the bargaining power of ship buyers
increased considerably. They are very price sensitive and are able to take
+ ++
advantage of the fierce competition between shipbuilders to drive down purchase
prices. Large buyers also tend to order ships in bulk and shipbuilders, seeking to
utilise as much capacity as possible because of their high fixed costs, are generally
Suppliers Customers
+++
+ +++ willing to offer additional price reductions for sister ships.
Rivalry
• However, the resumption of orders since 2021 is changing the situation,

Substitutes
+ particularly with the arrival of new container ships running on green energy.
These ships, with their more advanced and costly technology, are considerably
more expensive than traditional ships. Nevertheless, the environmental context
and the progressive introduction of regulations in favour of the environment are
now pushing shipping groups to invest in this type of container ship. Thus, the
major shipping companies will be obliged to agree on the price of the builders as
soon as fleet renewal becomes mandatory.

Almost half of the world's fleet is chartered

Shipping companies’ ownership rate in 2022 Shipping companies’ ownership rate in 2014
Unit: in thousand TEU Unit: in thousand TEU
Owned vessels Charged vessels Owned vessels Charged vessels
MSC Maersk
MAERSK MSC
CMA CGM CMA CGM
COSCO Hapag-Lloyd
Hapag-Lloyd Evergreen
Evergreen COSCO
ONE CSCL
HMM Hanjin Shipping
Yang Ming MOL
ZIM APL
0 1 000 2 000 3 000 4 000 5 000 0 1 000 2 000 3 000

Source : Alphaliner Milliers Source : Alphaliner Milliers
Nearly half of the container transport fleet is chartered (48.5% for the top 10 groups in November 2022). This proportion is
more or less identical to that of 2014 (50.2%) since this provides a certain flexibility for the operator (short contract, cancellation
of the charter in the event of excess capacity, etc.). These vessels are generally chartered by shipping groups in order to respond
to a growing increase in volumes on certain maritime routes, particularly the new ones. Companies have few alternatives to
chartered vessels on these routes, in terms of size and type of vessel, which gives the charterers a certain bargaining power.
Conversely, the main shipping routes (Asia-Europe and Asia-US) are generally sailed by owned vessels. This allows shipping
companies to have high-capacity vessels for a long period of time.

Port operators and other logistics companies represent a significant cost for
transport operators
CMA-CGM's operating expenses (2021)
Unit: share of total operating expenses in %.
Land transport and short lines

1,1%
4,1%
Handling
4,9% 0,1%
5,0% 27,1%
The example of CMA-CGM, which is Staffing costs
fairly representative of the entire 5,1%
sector, shows the significant share in Roads and consumables
their operating costs of services
purchased from port operators and General and administrative costs 12,9%
other logistics companies operating in
port terminals.
Port and canal
The operating costs of the fleet are
comparatively lower and consist
Chartering and space purchases 14,8% 25,0%
mainly of operating costs (staff costs,
bunkers and consumables and
container rental). Container rentals and other logistics
expenses
Depreciation of stocks and receivables,
net of reversals
Purchase of logistics services: 70% of costs
Other
Source: CMA-CGM

4.1. Competitive environment Threat of substitutes
Containerised maritime transport remains largely unaffected by substitutes
• Threat of substitutes in the container shipping industry is rather low. Container

shipping is the most economical mode of transport for long distance shipments
and the only choice when it comes to shipping large quantities of manufactured
+ ++ goods and/or heavy/bulky goods across continents.
Suppliers Customers • However, for certain types of shipments, air freight is an effective substitute for
+ +++ +++
Rivalry
containerised ocean trade. For small shipments of high-value manufactured
goods, air freight offers greater security and faster, more reliable delivery. This is
Substitutes
+ the case for computers and electronic equipment, for instance. However, air
freight is more expensive and subject to stricter regulations, especially for the
shipment of hazardous materials.
• For its part, rail transport is gradually becoming a substitute for maritime transport. Indeed, the project of China and its neighbours
around the "Silk News" should eventually offer an immense logistical route between Asia and Europe. These routes would allow a less
expensive journey for carriers for a shipping time more or less equal to that of maritime transport.

4.1. Competitive environment Threat of substitutes
Maritime transport is the second cheapest mode of transport after rail

Transport costs for imported goods by mode of transport (2016)
Unit: in % of the value of the "free on board".
Monde Pays les moins développés Pays développés

14
11,6
12 11,1
10,5
10 9,4 9,7 9,3 9,3
8,5
7,5 7,9 7,7 7,7
8
6,6
6 6,1
5,6
6
4,4
4
2,3
2
0
All modes of Maritime Air Road Rail Other
transport
Source: UNCTAD
Maritime transport is the second cheapest mode of transport after rail. However, it should be noted that sea freight is able to
deliver more goods than rail and also has more diversified and global routes. Indeed, by ship, goods can be shipped from Asia
to the Americas, whereas rail or road are limited to inland routes. Air freight, on the other hand, has the highest transport costs
and faces stricter restrictions, thus limiting its competitivity compared to maritime transport.

4.2. Leaders' strategies Business strategies
Key strategies: maritime capacity building and diversification in logistics

Overview of shipping companies’ main strategies
Strengthening its maritime capabilities Digitalising the business

 Expansion of the fleet  Digitisation of control platforms
 Purchase of containers  Launch of new innovations
 Opening of new lines  Partnering with/buying innovative start-ups
4 main axes
Diversifying into logistics Decarbonising activity

 Manage the entire supply chain from order to  Greening the fleet
receipt  Implementation of new solutions (less polluting
 Becoming a multimodal and intermodal hulls, speed reduction, etc.)
and intermodal carrier  Investment in alternative fuels
 Acquisition of logistics companies

4.2. Leaders' strategies Strengthening maritime capacities
Shipping companies expand their fleet to boost their business

Benefits of strengthening the maritime fleet for shipping groups
Since the economic recovery in 2021, shippinh groups are greatly increasing their fleet
Providing a wider Reduce transport

Achieve economies
Capturing more range of services time Improving
of scale
demand (opening of new (more boats on the competitiveness
(larger vessels)
lines) same line offline)
The two very good financial years of 2021 and 2022 enabled leading shipping companies to heavily invest in capacity. Thus,
groups intend to strengthen their business to start a virtuous cycle. Indeed, the more ships there are available, the more
frequent the passages will be. This also makes it possible to open up new routes to new destinations, in particular via new ports.
Therefore, the group's competitiveness is increased, which allows to capture more demand. In addition, the new container ships
help shipping lines to achieve economies of scale, as these larger vessels have a much lower unit cost than older vessels with a
smaller capacity.

Shipping companies are focusing on new container ships

to capture more demand
Advantages, disadvantages and examples of shipping groups' fleet expansions
Since the health crisis, the world's shipping companies have been investing massively in expanding their fleets
Benefits Disadvantages
 Increase in total TEU capacity  Rising fuel costs
 Increase in frequency of visits  Requires more space in ports: increases berthing costs for ships
 Opening of new lines  Risk of surplus in case of demand reversal
 Ability to transit in new ports  Increased pollution (wider container ships pollute more)
 Achieving economies of scale
In recent years, the MSC Group invested heavily in developing its fleet in order to become the leading shipping line in
terms of total capacity. In 2021, for instance, it has ordered nearly 20 container ships with a capacity of 16,000 TEU, ten
24,000 TEU ships, etc. By the beginning of 2022, the group became the world's largest shipping company.
In November 2022, it had a 17.5% share of the total capacity market, i.e. almost 4.6 million TEUs. Its order book stood
at 1.7 million TEU.
In order to meet the increased demand, Evergreen is investing heavily in fleet renewal. Between March 2019 and
November 2022, the group's total capacity increased from 1.2m TEUs to 1.6 million TEUs, an increase of 37%. More
recently, it ordered 20 vessels with a capacity of 15,000 TEU in March 2021 for €2.2bn, followed by three 24,000 TEU
container ships in March 2022 (around €500m for delivery by 2025). In total, between 2022 and the end of 2025, the
group will receive 40 new vessels, increasing the total capacity by 550,000 TEU, i.e. a 30% increase.
Source: Xerfi Global, based on trade press

The strengthening of fleets allows shipping companies to boost their

activity by opening new shipping lines
Benefits and examples of opening new shipping lines
Expansion of the container ship fleet enables new shipping lines to be opened
To offer a wider and more Use all its vessels to avoid

Positioning yourself in
Delivering new ports varied range to its the inactivity of some
new dynamic markets
customers container ships
After receiving its ordered container ships in 2018, Yang Ming opened several lines since
2021:
- Between China, South Korea and South East Asia, since September 2021 ;
- Between China and Australia since February 2022 ;
- Between the Far East and Latin America since June 2022.
Orient Overseas International opened several new routes in 2021:

- A hybrid (rail-sea) line between China and the US since September 2021,
- Three new Trans-Pacific routes in 2021

Increased exploitation of port terminals by shipping groups

Recent examples of shipping companies expanding into port terminal operations
To ensure the passage and mooring of their new container ships, some groups are investing in
in the operation of port terminals
In 2000, MSC launched its Terminal The group is continuously investing in the For some years now, COSCO has been
Investments Limited (TIL) division with the operation of airport terminals. By 2021, it investing heavily in the development of its
objective of developing its international was operating 50 terminals in 33 countries. "Terminals" activity with the aim of having
network of port terminals. By the end of This gives it more container storage anchor points in all four corners of the
2022, the group owned more than 70 capacity in key regions. The French group world. This allows COSCO to create
terminals (some of which are in the is also making these investments in order synergies between these different ports
process of being finalised) in 31 different to have a strategic position in certain (reinforcement and creation of new
countries. These terminals provide services ports. Operating a port terminal ensures shipping lines), to reduce its operating
for moving containers between sea that its container ships are accessible at a costs and to reduce its operating risks.
transport and other routes (road, rail, etc.). desired volume and pace. At the end of 2021, the group owned
These services include container lifting, nearly 40 terminals worldwide with a total
storage, sorting and customs clearance, capacity of 129.3m TEUs. In October 2022,
and transfer. In July 2022, MSC announced it acquired a 25% stake in the port of
a €700m financing in the port of Le Havre Hamburg, its 8th European terminal. It now
to increase the number of containers from intends to strengthen its presence in the
1.3 million per year to 4.5 million. emerging countries over the next few
years.

4.2. Leaders' strategies Diversifying into logistics
Diversification into logistics services is at the heart

of maritime industry leaders’ strategies
Reasons and means for shipping groups to diversify into logistics services
Diversification of activity in logistics services
Optimising maritime Create connectivity Providing integrated

transport between maritime Reaching out to new services Diversifying sources
(roads, stops, speed, freight and other customers (from order to final of income
etc.) modes of transport delivery)
Through the internal development

Through the acquisition of Through capacity investments in
of other modes of transport,
logisticians (global and/or local) targeted regions
warehouses, etc.
Shipping companies are now seeking to become integrated groups in global logistics with the aim of offering a complete
package, from order to final delivery. In this way, they are no longer active in only one segment of freight transport. They
acquire international or local logistics providers, or develop other modes of transport internally (purchase of trucks, aircraft
rental, warehouses, etc.). They may also acquire companies that offer digital logistics solutions (SaaS platform, digitisation of
order books, etc.).

Shipping companies tand to favour external growth

to diversify into logistics services
Examples of measures taken by shipping groups to strengthen their logistics activities
Increased acquisition and Increased acquisition and Increasing number of acquisitions

and construction of warehouses partnerships with logisticians and partnerships with logisticians
 In 2019, the group acquired CEVA

 In May 2022, Maersk acquired Pilot  In September 2022, the group took a
Logistics, one of the world's leading
Freight Services, a US company minority stake (49%) in the Italian
logistics companies
offering logistics solutions for Spinelli Group, a group specialised in
 In April 2022, it acquired Ingram
freight. It operates globally. terminal management and logistics
Micro's Commerce and Lifecycle
 In June 2022, the group acquired solutions (warehousing, multimodal
Services business for $2.9bn.
Senator International, a freight solutions, customs brokerage, etc.).
This division specialises in logistics
forwarding company operating  In October 2022, Hapag-Lloyd
for e-commerce.
internationally. acquired the terminals and logistics
 In the same month, CMA CGM
 In August 2022, Maersk acquired LF division of the Chilean operator SM
acquired Colis Privé, a group
Logistics, a Hong Kong-based SAMM for approximately €1bn.
positioned in last-mile delivery.
logistics company operating in Asia. This division offers logistics services
 In April 2022, the group acquired
It owns 223 warehouses. in the maritime, air, road and other
GEFCO, one of the European leaders
 In parallel, by the end of 2022, sectors.
in contract logistics.
several warehouses will be opened
 Meanwhile, the group developed its
in the UK (56,000 m²), Ireland (23,000
'Air Cargo' division, which deals with
m²), Bangladesh (10,000 m²), Dubai
air freight. It joined forces with Air
(10,000 m²), India (40,000 m² and
France-KLM to jointly manage this
10,000 m²), etc.
division.

COSCO Shipping Holdings and Orient Overseas International diversify into

logistics services
The two groups' investments in the logistics industry
Cosco Shipping Holdings established two joint ventures Both groups are also investing in the development of new
with global groups in 2022 to become a leader in logistics services on their own or jointly:
automotive logistics, while Orient Overseas Express
formed a joint venture in September 2021 in Indonesia to
expand its logistics services:
 In January 2021, OOIL launched its "FreightSmart"
logistics platform to simplify and accelerate the ordering
of sea freight;
 In February 2021, OOIL launched "Logistics Costa Rica" to
develop logistics activities in South America;
 In September 2021, the two groups launched "Channel
L", a service offering customers an end-to-end logistics
solution (all modes of transport);
 In April 2022, OOIL launched, together with GSBN (Global
Shipping Business Network), a blockchain system for
shipping. This solution connects all industry stakeholders,
offers digitised solutions, etc. ;
 In October 2022, COSCO launched its logistics division
and entered the 3PL market.

4.2. Leaders' strategies Business digitalisation
Transporters rely on digitalisation to increase efficiency

Direct applications of digital technology for the container transport sector
Autonomous
Electronic Advanced Internet of Artificial Cyber
Tool platforms analysis things intelligence
ships and Blockchain
security
robotics
Organisation of
the network
Direct Lead
application in Online booking generation
Monitoring of
ships'
Call centres Electronic
waybill Security of
the container Online freight Demand
machinery Dynamic
Automated ship
navigation
customer data
shipping management forecasting
Monitoring the
capacity
reallocation
Payment
automation Security of
sector Customisation Dynamic
condition of
Automated
stopovers
automated
refrigerated Preventive Goods operations
for customers pricing
containers maintenance insurance
Repositioning
of empty
containers
Source: Boston Consulting Group
Shipping companies are increasingly turning to digital solutions in order to improve the efficiency of their activities. Indeed, by
digitising some of their services, notably through digitalisation, blockchain or artificial intelligence, shipping groups are able to
improve productivity (faster order taking, instant invoicing, etc.), reduce costs (better organisation of the fleet in terms of
capacity, repositioning of empty containers, etc.), optimise processes (automated calls, container analysis, etc.), better trace and
monitor shipments (IoT sensors), etc.

Digital solutions are becoming a major part

of shipping companies’ growth strategies
Benefits and examples of implementing digital and digital solutions
Shipping companies are developing digital solutions to improve the transport of containerised goods.
Improved
Better tracking and Reduction of
productivity/ Cost reduction Process optimisation
monitoring pollution
efficiency
ZIM recently invested in the digitalisation of its services. Indeed, in October 2021, it launched its "Ship4wrd" platform
dedicated to freight forwarding, particularly through sea. Subsequently, it launched "Zim eCommerce Baltimore
eXpress", a specialised platform for e-commerce between China and the United States. This platform allows customers
to take advantage of the fastest shipping lines according to their needs. Meanwhile, ZIM invested in technology
companies to develop new solutions. In June 2022, it invested $6m in DSG, a company specialising in artificial
intelligence, with the aim of creating a governance and decision management system. Finally, in August 2022, the
group invested $5m in Sodyo to develop a faster and more efficient scanning solution.
Both groups are focusing on IoT sensors to improve container traceability and tracking. Evergreen started
installing these devices in 2020 in order to reach complete coverage within a few years. For its part,
Hapag-Lloyd started implementing this technology in August 2022 for a total coverage planned by the
end of 2023. It also intends to offer a digital service based on these IoT sensors from the beginning of
2023.

Major shipping companies join forces to set digital standards

on a global scale
The main objectives and recent activities of the Digital Container Shipping Association
At the end of 2018, four key groups

in the the global container shipping
industry (Maersk, Hapag-Lloyd, MSC and
Digital Container ONE) announced a plan to create a non-
Shipping profit association open to all third parties
Association (customers, ports, customs authorities).
In 2019, the association welcomed
CMA CGM, Evergreen, HMM, Yang Ming
Marine and ZIM Integrated Shipping.
Main objectives of the DCSA Recent activities
 Create a neutral association where commercial and  In July 2022, the association entered the final testing
operating issues will not be discussed. phase for its "eBL Platform". The platform will be
 Resolve the problems associated with the lack of able to collect data from shipping groups and
standards to ensure greater operational fluidity. partners, enabling shippers and principals to choose
 Promote interoperability through the establishment the right supplier for their needs. Electronic
of common standards for interfaces and technical documents (invoices, orders, etc.) will also be easily
data. exchanged between the various parties involved.
 Openly publish and make freely available all  In August 2022, the European Shipper Council and
standards established by the association to DCSA announced their collaboration to establish
interested external parties . digital standards for the maritime industry.

4.2. Leaders' strategies Decarbonising
Shipping companies’ long-term strategies

are centered around decarbonising
Reasons and means to decarbonise the maritime industry
Strong increase in global environmental issues
Governments and institutions (IMO) are gradually Customer expectations are (slowly) converging
introducing environmental regulations towards "green" transport
Construction of
Development of new
Greening Production of "green" buildings Implementation of
technological
of the fleet alternative fuels (hubs, warehouses, new processes
solutions
etc.)
The sharp rise in global environmental problems forced governments and institutions such as IMO to introduce new regulations
to accelerate the decarbonisation of industries, including shipping. Today the sector accounts for about 3% of global CO2
emissions, but could reach 17% by 2050 if no changes are made (according to COP27). Customer expectations are also
converging towards "green transport", i.e. environmentally friendly modes of transport (LNG, electric, hydrogen, etc.). Shipping
companies are therefore gradually investing in the greening of their fleets, in the production of alternative fuels for their ships,
in the construction of "green warehouses" and in the development of new technologies to reduce energy consumption.

Shipping companies start greening their fleets

Examples of investments made by shipping groups to reduce their carbon footprint
The group committed In October 2022, 12 In May 2022, the group ZIM ordered 3 LNG-
more than €5bn to the methanol-fuelled 24,000 purchased 10 neo- fuelled container ships in
order of 44 liquefied gas TEU ships were ordered. panamax containerships February 2022. They will
powered ships, which will Deliverable between 2026 (13,700 TEU) to be be operating in 2024.
be operating by the end of and 2028, the total price operating by 2025. These It also signed a 10-year
2024. of these container ships is vessels, largely powered contract with Shell for the
€2.8bn. by methanol, required delivery of LNG fuel worth
$1.6m financing. more than $1bn.

Maersk wants to produce 'green fuel' on its own
To reduce their carbon footprint, some shipping companiesare focusing

on in-house production of alternative fuels
Position in an
Reduce/remove
Manage the entire underdeveloped sector Avoid paying prices
dependence on
production and supply where there is not that are usually very
traditional fuel
chain enough fuel for high
producers
everyone
With the aim of achieving carbon neutrality by 2040, Maersk signed an agreement in
November with Spain to open two green methanol production plants. They will enable it to
produce 2m tonnes per year, i.e. 10% of the group’s fleet. This project requires an investment
of €10bn. The group intends to comission 19 ships running on green methanol between
2023 and 2025.
However, to meet its 2030 environmental commitments, it will need to purchase 6 million
tonnes per year of this fuel from specialist producers at high prices.
CMA CGM also announced its desire to produce green fuels through its "Energy Fund"
created in September 2022. The fund will be endowed with €1.5bn (allocated over 5 years) to
carry out this strategy. The decarbonisation of the fleet and terminals, the development of
sustainable projects and the strengthening of the group's energy sobriety are also part of the
fund's missions.

HMM to invest $2.9bn for the decarbonation of its business

Example of a long-term plan from a leading maritime industry
Some groups adopted a long-term vision to decarbonise their business
In its "Strategy 2026" plan, HMM devoted $2.9m to decarbonise its business
 Installation of scrubbers
Short
 Purchase of low-sulphur fuels
term  Change of some ship hulls
Medium
 Securing low-carbon container ships (LNG, methanol, etc.)
term
 Investments in research and development of "green container ships" (green methanol, hydrogen, etc.)
Long  Develop partnerships with the various groups in the maritime industry value chain to develop green fuels
term  Priority use of "green ships

5. Sources

Group websites
A.P. Møller - Mærsk www.maersk.com
CMA CGM www.cma-cgm.fr/
COSCO Shipping Holdings www.en.coscoshipping.com
EVERGREEN Marine Corp www.evergreen-marine.com/
HAPAG-LLOYD www.hapag-lloyd.com
HYUNDAI MERCHANT MARINE www.hmm21.com
www.one-line.com
www.nykline.com
OCEAN NETWORK EXPRESS
www.mol.co.jp
www.kline.co.jp
ORIENT OVERSEAS INTERNATIONAL www.ooilgroup.com
YANG MING www.yangming.com
ZIM www.zim.com

The professional press
Business, economic and financial news

Bloomberg
www.bloomberg.com

Businessweek
www.businessweek.com

Financial Times
www.ft.com

Forbes Magazine
www.forbes.com
Maritime news
The antenna
https://www.lantenne.com/

Les Echos
https://www.lesechos.fr/
Maritime news
Seatrade Maritime New
http://www.seatrade-maritime.com/

The Economist
www.economist.com

Thomson Reuters
www.thomsonreuters.com
Global Economic and Financial Journal

Wall Street Journal
online.wsj.com
Maritime news
World Maritime News
http://worldmaritimenews.com/

Professional organisations and data sources
Bureau of Transportation Statistics

BTS
bts.gov
Clarkson http://www.clarksons.com/services/research/
https://www.drewry.co.uk/
Drewry
Eurostat https://ec.europa.eu/eurostat/fr/
Feri https://www.feri.de/en/
National Bureau of Statistics of China

NBS
data.stats.gov.cn
Organisation for Economic Co-operation and Development

OECD
http://www.oecd.org/
World Trade Organisation

WTO
https://www.wto.org/
European Ships and Maritime Equipment Association

SEA Europe
http://www.seaeurope.eu
United Nations Conference on Trade and Development

UNCTAD
https://unctad.org/statistics
Statista www.statista.com

6. Annexes

Exchange rates
Yuan Ren Min Bi Average exchange rate for the year 2019: 1 EUR = 7.80736 CNY
Japanese Yen Average exchange rate for the period 01/04/18 to 31/03/2019: 1 EUR = 128.40083 JPY
US Dollar Average exchange rate for the year 2019: 1 EUR = 1.18149 USD
South Korean Won Average exchange rate for the year 2019: 1 EUR = KRW 1.279.9650

Glossary
ITEM DEFINITION
Assets encompass all the economic resources owned by a company. They are commonly divided into short term (cash, trade
Assets
receivables, etc.) and long term assets.
CAGR Acronym for Compound Annual Growth Rate.
Short for "Capital Expenditure", an item of the cash-flow statement used as a proxy for investment in property, plant and
Capex
equipment (PPE). Generally entails physical assets used to maintain or increase operation capacities.
Capex ratio The percentage ratio between capital expenditures and net sales.
The current ratio is found by dividing current assets by current liabilities and indicates whether the company has enough
Current ratio
resources to pay its short term debt (12 months).
Debt-to-equity The ratio between total liabilities and total equity, reflecting the company’s relative amount of debt.
Free
The cash that a company is able to generate after subtracting expenses needed to maintain its asset base.
cash flow
Gross profit is the result of the difference between total sales and the cost of making products or providing services. Payroll and
Gross profit
interest costs as well as taxes are not taken into account.
Impairment Impairment charges occur when a company has found that the value of its goodwill has been overestimated and needs to be
charge revised.
Interest coverage is calculated by dividing operating income by net interest expenses and reflects the company's debt burden, i.e.
Interest coverage
its ability to pay interest on outstanding debt. The lower this ratio, the more the company is burdened by interest expenses.
Liabilities encompass all obligations arising from a company's past operations and which will result in an outflow of resources in
Liabilities
the future. Liabilities are divided into short term and long liabilities, and represent the debt a company owes to its creditors.

Glossary
ITEM DEFINITION
Net debt Net debt is calculated by subtracting a company's cash from its total debt.
Net profit/ Net profit refers to a company's total earnings. It is the result of the difference between net sales and all operating and non-
net margin operating expenses such as taxes, interests, depreciation and amortisation expenditures.
Operating profit refers to the earnings generated by the normal business operations of a company. Operating profit is the result
Operating profit/
of the difference between sales and total operating expenses. Operating margin is expressed in % and is computed by dividing
operating margin
operating profit by net sales.
Expenses associated with the research and development process of creating new products or services; it is often used as a proxy
R&D expenditure
for innovation.
Return on assets is calculated by dividing a company's net income by its total assets. It measures the ability of the company to
Return on assets (ROA)
generate profits from its assets.
Return on equity is calculated by dividing a company's net income by its shareholder equity. It measures the ability of a company
Return on equity (ROE)
to generate profits from its investment funds.
Earnings made from the sales of goods and services, excluding VAT and other taxes. Reflects, total volumes sold, selling prices,
Sales
exchange rates and product mixes.
The quick ratio is calculated by dividing current assets net from inventories by current liabilities and measures the company’s
Quick ratio
immediate capacity to repay its short term debt.
Working capital is the difference between currents assets and current liabilities. When positive, working capitals means a
Working capital
company would able to pay its short term debt.

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The Global Shipping Industry (November 2022)

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The Global Shipping

Market Analysis - 2021-2024 Trends -

Date of publication November 2022

Main contributors Vinchenzo Borrego, Olivier Lemesle, Luc Brunet

Report code 22WXSTR05

Identification of market leaders

Identification of the main market indicators

Identification of corporate strategies

Identification of the key conclusions

This is a collective report written Other contributors include: Olivier Lemesle

The Global Shipping Industry - November 2022 2

3. The market and leaders' activity 28

3.2. The global maritime transport market 42

3.3. Leaders' activity and performances 57

The Global Shipping Industry - November 2022 3

4.2. Leaders' strategies 81

The Global Shipping Industry - November 2022 4

The Global Shipping Industry - November 2022 5

Main trends 2021-2024

The Global Shipping Industry - November 2022 6

The gradual deterioration of the global economic situation in 2022

Global trade Global GDP

Processing and forecasts: Xerfi Global / Sources: IMF

The Global Shipping Industry - November 2022 7

Demand exceeded supply in 2021 after several years of overcapacity

The Global Shipping Industry - November 2022 8

Harpex freight rates (2016-October 2022)

Calculations : Xerfi Global / Source: Harper Petersen

The Global Shipping Industry - November 2022 9

Two possible scenarios after the atypical 2021-2022 years

Volumes to be transported are still important in the

Shipping companies' revenues are still 20% higher

Source: Xerfi Global

The Global Shipping Industry - November 2022 10

Most containers go through the Asia-America route,

Source: UNCTAD Source: UNCTAD

The Global Shipping Industry - November 2022 11

Asia accounts for almost two thirds of container traffic

Latin 3.9% Latin 4.0%

Source: UNCTAD Source: UNCTAD

The Global Shipping Industry - November 2022 12

The shipping industry is facing increasingly strict environmental regulations

Main environmental regulations affecting the shipbuilding industry (2017-2022)

IMO (International Maritime

Minimum percentage use of green fuels by

Source: Xerfi Global

The Global Shipping Industry - November 2022 13

Key strategies: maritime capacity building and diversification in logistics

Strengthening its maritime capabilities Digitalising the business

Diversifying into logistics Decarbonising activity

Source: Xerfi Global

The Global Shipping Industry - November 2022 14

Shipping companies’ EBIT ratio reached a record high in 2021

The Global Shipping Industry - November 2022 15

The three largest maritime transport groups experienced strong growth,

•Revenues increased by 55.5% in 2021 compared to 2020, mainly due to

•CMA CGM's strong growth in business (+78%) was driven by a sharp

The Global Shipping Industry - November 2022 16

Outstanding financial results for the leading maritime transport groups

•Revenue of the 3 Japanese shipping companies’ alliance doubled in

•At the end of FY 2021, Hapag-Lloyd's revenue rose strongly, by 74.4%,

Source: Xerfi Global, according to operators

The Global Shipping Industry - November 2022 17

Shipping groups that were struggling benefited from a favourable economic