BUSINESS

Global Shipping Giants Diversify as China’s Drive Overseas Reconfigures Logistics Chains

Published: Nov. 1, 2024 8:46 p.m. GMT+8

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An MSC cargo ship docked at Asyaport in Turkey. Photo: MSC

Global shipping giants are increasingly expanding beyond ocean transport and into land-based logistics, in response to changes in global supply chains caused in part by Chinese manufacturers’ accelerated overseas expansion.

A deal disclosed late last month showed that Switzerland’s MSC Mediterranean Shipping Co. SA has agreed to buy a majority stake in Brazilian port logistics operator Wilson Sons SA for 4.35 billion reais ($750 million). Over a month ago, an MSC subsidiary acquired British rail and road logistics operator Maritime Group Ltd.

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Who’s Who

MSC Mediterranean Shipping Co. SA: MSC Mediterranean Shipping Co. SA is expanding beyond ocean transport into land-based logistics, exemplified by its recent acquisition of a majority stake in Brazilian port logistics operator Wilson Sons SA for $750 million and a subsidiary's purchase of British logistics operator, Maritime Group Ltd. Previously focused on expanding its shipping fleet, MSC became the world’s largest container shipping firm in 2022, and is now diversifying its logistics offerings in response to global supply chain changes.

Wilson Sons SA: Wilson Sons SA is a Brazilian port logistics operator in which MSC Mediterranean Shipping Co. SA has agreed to buy a majority stake for 4.35 billion reais ($750 million). This acquisition is part of MSC's strategy to expand beyond ocean transport into land-based logistics.

Maritime Group Ltd: According to the article, Maritime Group Ltd. is a British rail and road logistics operator that was acquired by a subsidiary of MSC Mediterranean Shipping Co. SA over a month ago.

Moller-Maersk A/S: Moller-Maersk A/S is focusing on transforming itself into a comprehensive logistics service provider, covering air, land, and sea transport. Previously the largest container shipping firm, it was surpassed by MSC Mediterranean Shipping Co. in 2022. Maersk is adapting in response to evolving global supply chains, with increased complexity due to the Red Sea crisis and shifts in Chinese supply chains amid trade tensions and the Covid pandemic.

CMA CGM SA: CMA CGM SA, a French shipping major, expanded its logistics operations by acquiring Bolloré Logistics for 4.85 billion euros. This move aligns with the broader industry trend of diversifying supply chain solutions in response to global disruptions. CMA CGM's logistics arm, CEVA, sees growth opportunities in emerging markets like the Middle East, Africa, and India as businesses seek diversified transport solutions.

Bolloré Logistics: In late February, French shipping company CMA CGM SA reportedly acquired global logistics firm Bolloré Logistics for 4.85 billion euros ($5.3 billion). This move is part of a broader trend among shipping giants to expand their land-based logistics operations amid evolving global supply chain dynamics.

COSCO Shipping Corp. Ltd: State-owned China COSCO Shipping Corp. Ltd. has been investing in ports and logistics resources across South America, Europe, and Southeast Asia this year. This expansion aligns with the broader trend among shipping giants to venture into land-based logistics in response to shifting global supply chains, driven by Chinese manufacturers expanding overseas due to trade tensions and the pandemic.

CEVA: CEVA, CMA CGM's warehousing and logistics arm, sees opportunities to expand its global network due to the diversification of supply chain layouts and increased demand for diverse transport solutions. The company aims to grow especially in emerging markets like the Middle East, Africa, and India.

Kearney Inc: Kearney Inc. is a consultancy firm mentioned in the article for providing data on trade patterns. Specifically, it reported that in the previous year, Mexico surpassed China as the largest exporter of goods to the U.S. This shift may be linked to Chinese manufacturers moving supply chains overseas to avoid U.S. tariffs and higher domestic production costs in China.

AI generated, for reference only

What Happened When

In 2023：: Mexico surpassed the Chinese mainland as the largest importer of goods to the U.S., according to consultancy Kearney Inc.

Late last month：: It was disclosed that Switzerland's MSC Mediterranean Shipping Co. SA agreed to buy a majority stake in Brazilian port logistics operator Wilson Sons SA for 4.35 billion reais ($750 million) in 2024.

Late February 2024：: French shipping major CMA CGM SA reportedly acquired global logistics firm Bolloré Logistics for 4.85 billion euros ($5.3 billion).

AI generated, for reference only