Top 15 Largest Shipping Companies in the World

The top 15 largest shipping companies in the world command the shipping industry, whose value is estimated at around $500 billion. The companies at the top of the list have hundreds of ships under their command (both owned and chartered) and have total carrying capacities of over 1 million Twenty-Foot Equivalent Units (TEU).

The shipping industry relies on many factors to determine its performance. The most important is the global economy, as it directly affects international trade. After the last recession, global economic growth slowed down and exports volumes saw an average annual growth rate of 2.9% between 2008 and 2015, which is less than half of the what the rate was during the period between 2001 and 2008, according to the International Monetary Fund. This created a major headwind for the global shipping industry, which had to start lowering prices for shipping goods. The Baltic Dry Index, which measures changes in the cost of transportation of raw materials through aggregating data for 23 shipping routes and four different sizes of bulk cargo ships, is over 85% down compared to 2008, even though it has advanced by over 95% in the last year after having touched its lowest level ever in February 2016.

As the cost of shipping has declined, this has affected the revenue of shipping companies, many of which have registered either weak growth or even revenue declines. Given that shipping is a capital intensive industry and companies have taken on a lot of debt to acquire new ships or conduct other operations, the financial performance of some companies has started to worry investors and raise questions about their sustainability. Last year, South Korean shipping company Hanjin Shipping, which had been one of the largest shipping companies in the world, filed for bankruptcy.

Given the recent developments, such as the Brexit and the new White House administration, which has imposed import tariffs, international trade might pose further headwinds for the global shipping industry. On the bright side, prices for metal have been gaining ground lately and China’s plans to abandon the production of steel in exchange for imports should help the shipping industry. Based on that, the Baltic Dry Index has shown some recent growth recovery. The oil tankers industry, though affected by the drop in oil prices, has received some help in the form of the U.S becoming an oil-exporting nation (take a look at the 10 largest oil tanker shipping companies in the world).

The headwinds have also sparked consolidation in the shipping industry, with two major transactions announced last year. Maersk Line said last year that it would pay $4.2 billion to buy Hamburg Sud; both Maersk and Hamburg Sud are currently among the 15 largest shipping companies in the world. Earlier this year, Hapag Lloyd, which is also one of the largest shipping companies in the world, completed its merger with United Arab Shipping Company (UASC). In July, China-based Cosco Shipping Holdings Co. said it would buy Orient Overseas International Ltd for more than $6 billion.

Having said that, let’s take a closer look at the top 15 largest shipping companies in the world based on their total TEU capacity. The data is taken from the Alphaliner TOP 100 list.

15. K Line

TEU Capacity: 341,746

Kawasaki Kisen Kaisha, Ltd. or K Line is one of the largest transportation companies in Japan, which has a capacity of 341,746 TEU and which operates 58 ships, including 12 owned and 46 chartered. K Line’s fleet includes dry cargo ships, container ships, LNG carriers, Roll-on/Roll-off ships, tankers and container terminals. Last year, Kawasaki Kisen Kaisha, Ltd., together with Mitsui O.S.K. Lines and Nippon Yusen Kabushiki Kaisha, which are also among the largest shipping companies in the world, agreed to merge their container shipping businesses in a joint venture that is expected to start operations next year.

14. Hyundai M.M.

TEU Capacity: 351,813

Hyundai M.M. stands for Hyundai Merchant Marine, a South Korean company that is responsible for the largest volume of exports from the country, which makes it the local market leader and it has further strengthened its position after the bankruptcy of Hanjin. Over the years, Hyundai M.M. has established a global network that includes four international headquarters, 27 subsidiaries, 76 branches, five overseas offices and 10 liaison offices. It also operates a fleet of 61 vessels, including 13 that it owns directly.

13. Zim

TEU Capacity: 357,221

Zim Integrated Shipping Company is the biggest shipping company in Israel and it is based in Haifa, with a second headquarters in Norfolk, Virginia. Zim operates 73 ships, including six company-owned and 67 chartered. In the last four decades, Zim Integrated Shipping Company tried to become a publicly-traded company three times, in 2008, 2011, and 2016, but all attempts were abandoned.

12. Pacific International Line

TEU Capacity: 370,247

Next in line on our list of the top 15 largest shipping companies in the world is Pacific International Line (PIL), which was incorporated in Singapore in 1967. Pacific International Line has one of the largest company-owned fleets, which includes 114 ships and it operates a total of 135 ships.

11. NYK Line

TEU Capacity: 537,763

Nippon Yusen Kabushiki Kaisha, the number 11 in our list of top 15 largest shipping companies in the world is one of the oldest shipping companies in the world, having been founded in 1885. The company operates 93 ships, including 40 company-owned and 53 ships that are chartered. Nippon Yusen Kabushiki Kaisha is based in Marunouchi, Chiyoda-ku, Tokyo and generates annual revenue of around $21.22 billion.

10. Mitsui O.S.K. Lines

TEU Capacity: 548,607

Japanese transport company Mitsui O.S.K. Lines (MOL) was founded in 1884 and is headquartered in Tokyo. The company as it is known today was formed in 1964 through the merger of Mitsui and OSK and it is part of the Mitsui Group of companies. Mitsui O.S.K. Lines has 78 ships in operation, including 27 company-owned vessels and 51 ships that are chartered.

9. Hamburg Sud Group

TEU Capacity: 565,485

Hamburg Sud Group, which is owned by Oetker Group, ranks 9th in our list of top 15 largest shipping companies in the world. It operates shipping lines on the North-South ocean trade routes and has 106 ships under operation, including 49 company-owned vessels. The company is currently in the process of being acquired by Maersk, which announced the $4.02 billion transaction last year.

8. Yang Ming Marine Transport Corp

TEU Capacity: 579,826

Taiwan-based Yang Ming Marine Transport Corp operates 95 vessels, 45 of which are owned by the company and 50 ships which are chartered. Most of the company’s fleet consists of container ships. In 2016, Yang Ming Marine Transport Corp generated operating revenue of $3.83 billion.

7. Orient Overseas Container Line

TEU Capacity: 669,457

Orient Overseas Container Line (OOCL) is a wholly-owned subsidiary of Orient Overseas (International) Limited. The Hong-Kong based OOCL is an integrated international container transportation, logistics, and terminal company, which operates 320 offices in 70 countries. Orient Overseas Container Line’s fleet consists of 97 ships, including 56 company-owned vessels.

6. Evergreen Line

TEU Capacity: 1.07

Evergrine Line is a subsidiary of Taiwanese container transportation and shipping company Evergreen Marine Corporation. Evergreen Marine Corporation is engaged in shipping, the construction of containers and ships, the management of ports, and engineering and real estate development. Evergreen Line was formed in 2007 through the merger of Hatsu, Italia Maritima, and Evergreen. The company operates 195 ships, including 105 company-owned and 90 chartered.

5. Hapag-Lloyd

TEU Capacity: 1.51 million

On the fifth spot on our list of the top 15 largest shipping companies in the world is Hapag-Lloyd, which is a subsidiary of a German-headquartered multinational transportation company with the same name. In May, Hapag-Lloyd merged with United Arab Shipping company (UASC), which created a shipping company with 213 vessels.

4. China Ocean Shipping Company

TEU Capacity: 1.81 million

Up next in our list of top 15 largest shipping companies in the world is China Ocean Shipping Company (COSCO) that is the largest dry bulk carrier and the largest liner carrier in China. Last year, COSCO merged with China Shipping Group to form China COSCO Shipping, and earlier this year it made an offer to buy Orient Overseas (International) Limited. The state-owned enterprise operates 331 ships, including 82 company-owned and 249 chartered vessels.

3. CMA CGM Group

TEU Capacity: 2.49 million

French-based CMA CGM Group ranks third in our list of top 15 largest shipping companies in the world and it operates 494 ships, including 116 company-owned and 378 chartered vessels. The company, which is headquartered in Marseille and has a second headquarters in Norfolk, Virginia, operates on 200 shipping routes between 420 ports in 150 countries. Last year, CMA CGM Group generated revenue of $16 billion.

2. Mediterranean Shipping Company

TEU Capacity: 3.13 million

Mediterranean Shipping Company (MSC) is headquartered in Geneva, Switzerland and its main port of operation is in Antwerp, Belgium. With 507 ships in operation, including 189 owned by the company and 318 chartered, Mediterranean Shipping Company also has the second-largest number of ships among the top 15 largest shipping companies in the world.

1. A.P. Moller-Maersk Group

TEU Capacity: 3.52 million

On the top spot is A.P. Moller-Maersk Group, which is the largest shipping company in the world, having 651 vessels, including 249 company-owned and 402 chartered ships. Maersk is a Danish business conglomerate, which aside from being the largest container ship and supply vessel operator for nearly two decades, is also engaged in the logistics and energy sectors. Last year, Maersk announced that it would split into two separate divisions: transport & logistics and energy. The divisions within the Energy unit, which includes Maersk Oil, Maersk Drilling, Maersk Supply Service, and Maersk Tankers, will either remain in the Maersk Group, or will be separated as joint ventures, mergers, or a listing. A decision regarding the split is expected by 2018.

These are the top 15 largest shipping companies in the world based on their TEU capacity. Even though these companies operate many ships and are among the leaders in their regions, some companies are still struggling. Given the current environment, it’s likely that the industry consolidation will continue and giants like Maersk will target smaller players.

Disclosure: None