Indian Register of Shipping Announces Retirement of Managing Director Mr. Vijay Arora Indian Register of Shipping Announces Retirement of Managing Director Mr. Vijay Arora

Major shipping lines like Maersk, CMA CGM, and MSC are increasingly consolidating their presence in various logistics sectors. This trend, which gained momentum after the pandemic-induced spike in container rates, has seen these companies make numerous acquisitions and expand their services.

For example, MSC has been particularly active, purchasing Alis Cargo Airlines in August 2023 to bolster its aviation capabilities. The company has also acquired significant stakes in major logistics operators and port managing entities, such as Bollore Logistics, Clasquin, and a 49% share in the Hamburg port's managing entity. MSC's ventures into rail logistics include acquiring the Spanish cargo carrier Renfe Mercancias.

Similarly, CMA CGM has made strategic moves, including an alliance with Air France-KLM and the purchase of terminals in Bayonne and New York. The company has also partnered with the Italian railway operator GTS Rail and acquired Gefco, a logistics firm specializing in the automotive sector.

Maersk, on the other hand, has focused on expanding its e-commerce logistics capabilities, acquiring Ingram Micro’s e-commerce business in the US and LF Logistics in Asia. The company has also ventured into aviation and rail logistics, creating a robust logistics network.

Despite the different business models—such as Maersk integrating its forwarder Damco, while CMA CGM keeps Ceva Logistics as a separate entity—the overarching trend is the same. This aggressive expansion into comprehensive logistics solutions raises the question: are traditional road freight forwarders facing obsolescence as these shipping giants dominate the entire logistics chain?