Global shipping companies, which saw massive profits during the COVID-19 pandemic, are stepping up their “End-to-End” competition to brace for a potential downturn. This strategy extends beyond the traditional “Port-to-Port” method, aiming to control the entire logistics chain—from warehousing to transportation by air, rail, ports, and land—delivering goods directly from warehouses to consumers’ doorsteps. Given the cyclical nature of the shipping industry, which experiences significant downturns during economic slumps, companies are now focused on transforming into full-service logistics firms, rather than solely relying on the conventional approach of expanding fleets and lowering freight rates.

The logistics crisis during the pandemic has been the catalyst for this shift. Labor shortages at ports, compounded by strikes at major U.S. ports, exacerbated bottlenecks, leaving goods stranded at ports. This led to increased demand for logistics companies capable of managing the entire journey from origin to destination. In response, shipping companies have aggressively pursued mergers and acquisitions (M&A), acquiring land logistics firms, including trucking and rail, as well as air logistics companies. Their record-breaking profits during the pandemic, ranging from trillions to tens of trillions of won annually, have enabled these moves.

South Korea’s largest shipping company, HMM, recently announced a bold mid- to long-term strategy to invest 23.5 trillion won (around $17.49 billion) by 2030. Of that, 14.4 trillion won will go toward eco-friendly infrastructure to address carbon neutrality, and they plan to expand both their container and bulk ship fleets to compete in the global logistics race. Additionally, 4.2 trillion won will be invested in key port terminals and inland logistics hubs.

Currently ranked 8th globally with a 2.8% market share in container shipping, HMM is aiming to grow large enough to compete with the world’s shipping giants. Since the bankruptcy of Hanjin Shipping in 2017, South Korea’s shipping infrastructure has weakened, and HMM, once targeting a top-five spot with a 5% market share, has since fallen behind in size.

HMM plans to invest 12.7 trillion won in its core container business, expanding its fleet from the current 84 ships to 130 by 2030. It will also allocate 1.7 trillion won to container boxes, which have become scarce due to the logistics crisis, and 5.6 trillion won to its bulk carrier business for transporting raw materials like minerals and grain. According to an HMM representative, “We will also expand new port terminals and container storage facilities in the End-to-End business, laying the groundwork for entering the full logistics market.”

Although HMM remains under the control of its creditors, including the Korea Development Bank, and a potential sale to the Harim Group consortium was canceled earlier this year, the company rolled out this aggressive investment plan just six months later. While the sale process could resume, HMM’s leadership has decided that a passive approach is no longer feasible as global shipping alliances are expected to be reorganized in February next year, with competitors rapidly boosting their investments. HMM can tap into roughly 15 trillion won ($11.16 billion) in cash reserves built up during the pandemic to fund these initiatives.

The world’s top three shipping companies—Switzerland’s MSC (19.9% market share), Denmark’s Maersk (14.3%), and France’s CMA-CGM (12.5%)—which once competed by aggressively expanding their fleets, have already set their sights on becoming comprehensive logistics firms. While End-to-End strategies are already being pursued by logistics players like UPS, DHL, and FedEx, shipping companies are moving faster, given the industry’s capital-intensive nature and the long lead times required for new ships to be delivered.

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