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Container Line Mergers and Acquisitions
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Added on 2020-04-21
Container Line Mergers and Acquisitions
Added on 2020-04-21
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Running head: CONTAINER LINE MERGERS AND ACQUISITIONSContainer Line Mergers and AcquisitionsName of the University:Name of the Student:Authors Note:
1CONTAINER LINE MERGERS AND ACQUISITIONSTable of ContentsIntroduction..........................................................................................................................2Operational and Managerial Characteristics of the Container Liner Sector........................2Trends towards Concentration in the Market-Place via Mergers & Acquisitions...............4Conclusion...........................................................................................................................6References............................................................................................................................7
2CONTAINER LINE MERGERS AND ACQUISITIONSIntroductionErosion of shipping rate resulted in issues within container shipping industry. Numerousshipping companies resulted in losses in 2016. Lack of sustainable profit levels result inincreased industry consolidation that serves as a vital trend in mergers and acquisitions(Adamopoulos 2017). Container shipping industry is segmented and consolidation mightfacilitate careers to generate economies of scale. The objective of this paper is to analyze theoperational and managerial characteristics of the container liner sector through explain the caseof NYK-MOL-K.Line. Moreover, the trends towards concentration in the market-place via theprocess of mergers & acquisitions are explained through taking the example of this company inthis paper. Operational and Managerial Characteristics of the Container Liner SectorContainer line is a service industry that offers cargo transportation of international trade.Operations of shipping are categorized into sectors:Bulk shipping which offers services majorly regarding raw materials transportation thatincludes coal, crude oil, grain and iron ore (Alexandrou, Gounopoulos and Thomas2014). Liner shipping that offers services in transportation of semi-final and final products likemanufacturing product, computers and consumer products. Considering these two operations of container line sector it is observed that Japanese linessuch as Kawasaki Kisen Kaisha(K Line), NipponYusenKabushiki Kaisha(NYK), and MitsuiO.S.K. Lines (MOL) are jointly going to operate being Ocean Network Express (Cosco 2017).
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