Consolidation in the Shipping Industry

by Evelyn Simpson, Vice President, Chase Securities Inc.

The following speech was presented by Evelyn Simpson at the Connecticut Maritime Association’s annual March conference in Stamford, CT.

There have always been joint ventures, partnerships and alliances between shipping companies. Recently, however, we’ve noticed an acceleration in the rate at which companies are combining forces. Moreover, there has been a shift in the way in which they are doing so.

As in corporate America, the words “merger and acquisition” are becoming commonplace in the shipping industry. Hardly a month goes by when we don’t hear that some shipping company has acquired another, that a company is “on the block” or a company is exploring its strategic alternatives, LOF being the most recent example of the latter. The liner, tanker and reefer segments are leading the charge; however, should the dry bulk market continue to deteriorate, we may see some action there, too.

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