The year ahead will likely see more consolidation among ocean carriers, terminal operators and stevedores. The largest of the world’s container shipping companies speaks publicly about expanding its business through carrier acquisitions when the container shipping industry — today lacking in coherence — begins its recovery following the abrupt decline in ocean carriage in most trades.
Terminal operators and stevedores find that operating one or two facilities requires a back-office overhead that is monumental. More and more we see the move toward mergers, acquisitions, consolidation and other partnerships into such entities as Ports America and APM Terminals that find the economy of scale results in an improved business model. We will see many of the smaller companies acquire partners that can bring new energy to their business.
The same will be true of ports. Not every port will be a super-port. There is a great need for the short-sea shipping initiative, which will bring overseas cargo to smaller harbors whose facilities cannot handle the mega-carriers that will proliferate in world trade over the next 18 months as they are delivered. It is vital that labor and management work together to ensure that every port has its fair share of freight and of jobs, whether as a breakbulk or project-cargo center, while making certain that sectors of the maritime industry do not become virtual monopolies.
The weakness of our economy today — and the uncertainty of what might come next — calls for forward thinking, yet careful strategy. Those sectors that keep their eye on the future will emerge even stronger after the economy begins to recover. Solid partnerships will have the flexibility to go after new opportunities together.