Yahoo Finance The Biggest Shipping Company in the World in 2024
We recently compiled a list of the 15 Biggest Shipping Companies In The World in 2024 and in this article we will look at the biggest shipping company.
Shipping in Stormy Seas
The global shipping industry plays a crucial role in the global economy, facilitating the movement of goods and services across borders. However, the recent surge in geopolitical tensions has significantly impacted the industry, leading to increased costs, delays, and uncertainty. On March 4, Reuters reported that the global ocean shipping industry, which handles 80% of global trade, entered 2024 with unprecedented levels of risk, according to S&P Global Market Intelligence. Chris Williamson, the company's chief business economist, noted that this marks the highest degree of risk in the 25 years that the company has been creating these forecasts. Houthi missile and drone attacks on merchant ships in the Red Sea and Gulf of Aden have caused significant disruptions to cargo delivery and increased shipping costs. Container ship owners are diverting vessels away from the Red Sea and the nearby Suez Canal trade shortcut that handles approximately 30% of global container cargo. The alternate route around Africa's Cape of Good Hope adds five days or more to trips and increases fuel costs by up to $1 million. This has led to a surge in spot shipping rates, which have doubled or tripled on some routes and remain elevated.
Climate change is emerging as another significant threat to the shipping industry, posing a major challenge for industry players to adapt and mitigate its impacts. As reported by Reuters on March 18, pressure is mounting for the global shipping industry to pay a fee for its carbon emissions. The European Union, Canada, Japan, and climate-vulnerable Pacific Island states are among 47 countries supporting a proposal to charge a fee for each tonne of greenhouse gas produced by the industry. This move could raise over $80 billion annually to fund low-carbon shipping fuels and support developing countries in their transition. However, opponents like China and Brazil argue that this policy would unfairly penalize trade-reliant emerging economies. A study by Brazil's University of Sao Paulo found that a carbon tax on shipping could reduce GDP in developing countries by 0.13%, with Africa and South America being the most affected regions. The International Maritime Organization (IMO) is currently discussing this proposal, which could have huge implications for the global shipping industry.
Maersk's Resilience in the Face of Uncertainty
To overcome the challenges faced by the shipping industry, some of the largest shipping companies in the world are prioritizing innovation and adaptation. A.P. Møller - Mærsk A/S (OTC:AMKBY), one of the biggest shipping companies in the world in 2024, is actively working on minimizing disruptions caused by the Red Sea crisis. Maersk (OTC:AMKBY) operates a fleet of over 700 container vessels and has a total container capacity of more than 4 million Twenty-foot Equivalent Units (TEUs). Its business operations also include 65 terminals in 36 countries. The Danish shipping group is involved in marine transportation, port operations, supply chain management, and warehousing. With operations worldwide, the company has a presence in more than 130 countries.
To combat the Red Sea crisis, Maersk (OTC:AMKBY) has diverted its cargoes through the Cape of Good Hope from the Red Sea, which has resulted in an addition of 4,000 miles to its route and has also increased operational expenses. The group is experiencing a 40% increase in fuel costs and they anticipate this situation to persist in the back half of 2024. To mitigate the delays and congestion at its key ports in Asia Pacific, Maersk (OTC:AMKBY) is turning to air cargo transportation services and exploring a hybrid approach. The group is routing sea freight from ports in Asia Pacific to the Jebel Ali port in the UAE and is later transferring it for air transportation to major airports across the globe via airports in Singapore and Kuala Lumpur. Moreover, Maersk (OTC:AMKBY) has also established new routes from China to Turkey, Georgia and Azerbaijan, which are now operational.
Maersk (OTC:AMKBY) is also building new vessels that run on green fuels. In 2023, the company introduced Laura Maersk, the first of its new green fuel-powered fleet of container vessels. On May 8, the company's green methanol-powered vessel, Ane Maersk, arrived at the Jebel Ali Port in Dubai. Ane Maersk is the first of 18 large vessels that Maersk plans to add to its fleet in 2024 and 2025. The new vessels feature an innovative design with the bridge and accommodation placed at the front, allowing for increased cargo capacity and reduced fuel consumption per container. This milestone underscores Maersk's commitment to reducing its greenhouse gas emissions and minimizing its environmental impact by 2040.
An aerial view of an expansive shipping dock, its bustle of activity serving as a visual representation of the company's business.
Methodology
In this article, we compiled a list of the 15 biggest shipping companies in the world in 2024. To collect data for our list, we consulted AXSMarine's Alphaliner database. This database provided us with details on the number of ships owned by each company, their total TEU capacity, and market share as of June 12, 2024. Please note that TEU stands for "Twenty-foot Equivalent Unit," which is a standard measure of container capacity in the shipping industry. We used the latest data available and narrowed down our selection to rank the top 15 biggest shipping companies in the world in 2024, which are ranked below in ascending order of their total TEU capacity.
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The Biggest Shipping Company in the World in 2024
1. Mediterranean Shipping Company
Total TEU Capacity of the Company: 5,859,973
Market Share: 19.7%
Number of Ships Owned by the Company: 823
Mediterranean Shipping Company, also sometimes referred to as MSC, tops our list of the biggest shipping companies in the world. As a global container shipping and logistics company, it facilitates regional and international trade by transporting cargo around the world. Headquartered in Geneva, Switzerland, Mediterranean Shipping Company is an independent and family-owned company that was founded by Captain Gianluigi Aponte. The company has grown and diversified significantly since its inception. According to recently reported data, the company operates the world’s largest fleet of 823 vessels, boasting a total TEU capacity of 5,859,973 units. Mediterranean Shipping Company is the biggest shipping company in the world in 2024 by both fleet size and cargo capacity.
To learn more about the biggest shipping companies, check out our free report on the 15 Biggest Shipping Companies in the World in 2024.
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