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Market structure and horizontal growth strategies – A case study of the container shipping industry

Author

Listed:
  • Tran Nguyen Khoi

    (88547 EM Normandie Business School, Métis Lab, 20 Quai Frissard, 76600 Le Havre, France)

Abstract

This article aims to review the structural transformation in the container shipping industry from 1995 to 2020 and identify the growth strategies of global carriers to enhance their market presence. Along with large investments in mega vessels, the growing deployment of charter capacity in all ship sectors has been a prominent trend in fleet expansion. The waves of mergers/acquisitions and bankruptcies have narrowed the group of global carriers. In addition to internal and external growth, they have been increasingly involved in strategic alliances to expand service coverage and compete well with powerful rivals. A few mega carriers have progressively captured the industry. In 2020, the Top 12 controlled 88 % of the global supply, and nearly 56 % was in the hands of the Top 4. Besides the substantial expansion of the four biggest carriers, we can identify the de-concentration within this gigantic group through the less inequality between their market shares.

Suggested Citation

  • Tran Nguyen Khoi, 2022. "Market structure and horizontal growth strategies – A case study of the container shipping industry," German Economic Review, De Gruyter, vol. 23(3), pages 423-461, August.
    • Handle: RePEc:bpj:germec:v:23:y:2022:i:3:p:423-461:n:5
    DOI: 10.1515/ger-2021-0075
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    More about this item

    Keywords

    container shipping; market structure; horizontal integration; mega ships; merger and acquisition; strategic alliances;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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