Diversification is key to success in shipping industry, says former chairman, Evergreen
Bronson Hsieh, former chairman of Evergreen and Yang Ming, believes that diversification is essential for success in the transportation sector. According to Hsieh, shipping companies with freight forwarding subsidiaries can benefit from providing value-added services such as one-stop service. Hsieh also advises being active in multiple modes of transportation to gain an advantage. As an example, he cites Evergreen’s success in both the sea and air transportation industries. Hsieh observes that Maersk and CMA CGM are moving towards an integrator model, whereas MSC is focusing on market dominance through massive vessel orders. With 4.77 million TEUs, MSC currently owns more than 18% of the global container ship fleet.
Because of its larger order book, MSC is expected to close the gap with other container lines. As freight rates are expected to fall in the post-Covid era, other container shipping behemoths are pursuing different strategies. Which strategy will be more successful in the long run remains to be seen.
Source of information – Container news
