Consolidation through mergers and acquisitions has become a very clear trend for the freight forwarding and transportation industry in recent years, but the bulk carrier market does not seem to have much movement.
Since last year, large shipping companies such as Maersk Line, Hapagloss and CMA CGM have taken advantage of this opportunity to strengthen and benefit from the fleet. However, the integration of the bulk transport industry, the industry have different views.glenflange
Robert Bugbee, President of Scorpio Bulkers, said in a panel discussion on dry bulk shipping in CapitalLink: "At least 5 fleet consolidation takes place in the coming year, with at least three of these mergers expected to occur by the end of June." But Bugbee did not Details of the company that may take such action. He said the bulk shipping market is also poised to consolidate, especially given the capital markets are more likely to provide capital to larger companies than to small ones. As a result, some companies in the market are considering joining forces and discussing with their peers and banks.
But there are different opinions in the market. Polys Hajioannou, chairman and chief executive of Safe Bulkers, believes that there is not much consolidation in the industry. Hajioannou said: "Each company has its own ideas and strategies, I do not see how many companies can be done through the integration of things that make sense for the industry."glenflange
According to Hajioannou, the acquisition by Fredriksen Group of Quintana last year was a good time and an accident. However, he explained, the deal is unlikely to lead the industry trend. The reason for such a projection is that the demand for dry bulk markets in China and Brazil is increasing, and the bulk carrier industry is gradually moving out of the historical lows of the shipping cycle. The fundamentals of supply have also reached a level of benignity, especially due to shipyards' utilization rate. It is expected that the activity of new vessel orders will continue to be active.