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In Depth: Consolidation in Container Shipping Getting More Challenging

The container shipping sector has seen a massive consolidation wave over the past few years, reducing the number of carriers considerably.

It is estimated that by 2021, 75% of the global containership fleet will be owned by only seven top-tier liner companies, compared to 37% in 2005.

Further consolidation in the sector through mergers and acquisitions cannot be ruled out, however, the window of opportunity for the trend to continue is closing amid ever tighter regulatory rules and less free players to absorb, according to Jeremy Nixon, CEO of Ocean Network Express (ONE).

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More Than 20 Ports to Allow Open-Loop Scrubber Use

Several port authorities around the world have confirmed that they have no intention of banning the use of open-loop scrubbers in their waters, according to the Clean Shipping Alliance 2020 (CSA 2020).

More than 20 ports covering Europe, the Americas, Asia and Australasia submitted written approvals and no-objection letters on the matter following meetings between port officials and CSA 2020 Executive Committee members.

CSA 2020 said that the ports approached indicated that they do not intend to submit any papers to IMO pertaining to EGCS operation unless new, compelling research comes to light.

“After research carried out by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), Japan has now stated it will not ban the use of open-loop scrubbers in its waters and we hope to have more written confirmations in place soon,” CSA 2020 Executive Committee member Christopher Fee, General Manager, Environment and Sustainability, Oldendorff Carriers, said.

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