In Issue 675 of the Sea-Intelligence Sunday Spotlight, we analysed whether the turmoil of the last four years has led to the largest carriers growing in dominance versus the mid-tiered carriers, or has this been an opportunity for mid-sized carriers to gain in importance versus the big carriers?
HHI index dropped
For the full industry – represented by “across all 30” – the HHI index has declined very marginally, and being under 1,200, it would represent an industry with a low degree of concentration. For the 10 largest carriers, despite the turmoil since 2020, the concentration, and hence competitive pressure is also largely unchanged. The same is seen to be the case for the carriers in the third tier from rank 21 to 30. However, for the carriers in the tier just below the largest carriers, there has indeed been some increase in the level of concentration.
The data clearly shows that despite complaints from shippers as to the concentrated nature of the industry, the level of concentration, as seen from a global perspective, does not exceed what is normally seen as the threshold for marginal concentration.
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Source: Sea intelligence
