Ships are vital to worldwide trade. Container ships are among the largest oceangoing vessels, the pack mules of the global economy. The growth of ocean freight is far stronger than the growth of any other shipping or transportation sector.
Shipping can be very profitable. However, the business is cyclical, with periodic overcapacity, and price competition is steep. Over the long term, many companies cover their cost of capital but do not earn a profit. The industry is also very fragmented, although recent signs indicate a move toward consolidation. Container shipping, on the other hand, is somewhat concentrated. Container terminals are also dominated by global players. Industry leaders are making substantial investments to expand port capacity and build the necessary connections inland.
We work with companies to address these challenges, focusing on topics that include logistics network planning, demand-based customer segmentation, and risk management, in addition to corporate strategy and operations.