In this article, we will be looking at the top 15 global logistics and shipping companies in the world. To skip our detailed analysis, you can go directly to the 5 largest global logistics and shipping companies.
The global logistics and shipping industry is currently at a very interesting crossroads. While many industries have been crippled by the Covid-19 pandemic which has affected most countries around the world, few have been hit as hard as the logistics and shipping industry. The supply chain is fundamental for any business, regardless of the activity in which it operates. Without a strong supply chain system in place, businesses will struggle to balance demand and supply and could either overstock a product with lower demand, resulting in overstocking and holding costs, or fail to having the product available when demand is high, resulting in lost sales and negative impact on the company’s reputation. Simply put, an efficient supply chain is essential to growing a business. This is even more true in a world where global trade continues to increase and multinational companies have production facilities in specific regions of the world that supply products to the countries where these companies are located. This is why, for most multinational companies, you will notice that their manufacturing sites are much lower than the number of countries to which they supply their products.
The Covid-19 pandemic has brutally exposed the vulnerability of the global supply chain. Global supply chain disruptions, capacity shortages, port congestion and ever-increasing freight rates are all challenges that the biggest logistics and transport companies are trying to overcome, albeit with success. limit. According to KPMG, 67% of CEOs said they would invest more in disruption detection and innovation processes to anticipate problems and be more proactive than reactive. Even in 2022, when the effects of the pandemic have largely subsided, global logistics continued to face continuous disruptions due to which the flow of consumer goods in key markets such as India, Europe, North America and Southeast Asia. Major ports continued to be closed, either systematically or intermittently depending on the impact of the pandemic. China, for example, has embarked on a “zero-Covid” policy which leads to long confinements instituted in areas where even a few cases of Covid are detected. This logistical disruption is having a ripple effect on global supply chains resulting in goods being stuck in warehouses, impacting shipping companies trying to get to ports as diversions or delays occur when reaching major transit hubs. This in turn translates into limited product access to companies, while global trade flows also end up being restricted.
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Just when it looked like the pandemic had subsided and it would reduce pressure on the global supply chain, the Russian-Ukrainian War began in 2022. Due to the unprovoked invasion of Ukraine by Russia, the West has imposed several high-impact sanctions on Russia, its supreme government. officials and its greatest oligarchs. The sanctions, combined with the war, have again disrupted the global supply chain, affecting the operations of the world’s largest logistics and transport companies.
Of course, it is not just the pandemic and the Russian-Ukrainian war that are major concerns for the logistics and shipping industry. A global recession is more or less inevitable, with the Bank of England saying the UK is facing the longest recession since records began. Meanwhile, record levels of inflation have hit many countries, robbing people of their disposable income and, as a result, a drop in consumption is looming. Many retailers are reducing their sales expectations while in China, car assembly plants and electronics factories close due to a lack of electricity.
These conditions combined mean that industries slow down and production goes down, and if demand and production go down, so does supply. In addition, dockworkers are on strike in the UK and Germany, while in Ireland freight platforms are expected to be the main strike areas, with workers demanding higher wages in line with the rising cost of life. One thing is certain, it will certainly be interesting to see what happens to the largest logistics and transport companies in the world.
One thing is for sure, ranking the biggest logistics and transport companies in the world was not the easiest task. We first tried to do this based on revenue, earnings, assets, and market capitalization. We initially filtered the Forbes Global 2000 companies, but realized it didn’t include many companies. For these companies, we went through their annual reports to collect the data. However, it became apparent after some time that many of the largest companies in the world were being privatized and therefore information was not readily available. Therefore, we then decided to rank the companies according to their total cargo capacity and the total number of ships of each company, giving 70% of the weighting to the former and 30% to the latter. So, without further ado, let’s take a look at the most important companies for successful operations in most industries, starting with number 15:
15. IRISL Group
Total company TEUs in 2022: 143,468
Total number of company vessels (owned and chartered): 32
The Islamic Republic of Iran Maritime Group is a state-owned shipping company in Iran and has been sanctioned by many Western countries, including the European Union and the United States, for providing assistance to Iran’s nuclear program. While the sanctions were to be lifted after the Iran nuclear deal, the United States pulled out of the deal and reimposed the sanctions.
Total company TEUs in 2022: 150,429
Total number of company vessels (owned and chartered): 66
KMTC is a South Korean company and one of the country’s two entries in our list of the world’s largest logistics and shipping companies. Currently celebrating its 60th anniversary, KMTC has more than 30 offices in Japan in addition to offices in several countries.
Total TEU of the company in 2022: 153,003
Total number of company vessels (owned and chartered): 103
SITC is a Chinese company that currently serves 77 routes covering more than a dozen countries. SITC also serves 75 major ports and the countries it serves include Korea, Vietnam, Thailand, Indonesia, Cambodia, Malaysia, Philippines, Russia, Myanmar and Bangladesh.
12. Pacific International Lines
Total company TEUs in 2022: 297,163
Total number of company vessels (owned and chartered): 91
Pacific International Lines is a Singaporean company founded by billionaire Chang Yun Chung. The company currently serves more than 500 ports in 100 countries and has nearly 18,000 employees worldwide.
11. Wan Hai Lines
Total company TEUs in 2022: 425,317
Total number of company vessels (both owned and chartered): 147
The East dominates our list of the largest logistics and shipping companies in the world, with Wan Hai Lines being a Taiwanese company. Founded in 1965, it is today one of the most important companies in the industry.
10.ZIM Integrated Shipping Services Ltd. (NYSE: ZIM)
Total company TEUs in 2022: 537,522
Total number of company vessels (owned and chartered): 140
ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) is one of the largest Israeli companies in the world, with its headquarters maintained in Haifa. ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) is also listed on the New York Stock Exchange and currently has 140 vessels.
9. Yang Ming Shipping Company
Total company TEUs in 2022: 707,354
Total number of company vessels (owned and chartered): 94
Yang Ming Marine Transport Corporation is a Taiwanese company and in 2019 added two 14,000 TEU capacity vessels to its fleet. The company’s services cover more than 70 countries and operate in more than 170 service points.
Total TEU of the company in 2022: 818,063
Total number of company vessels (owned and chartered): 76
Formerly known as Hyundai Merchant Marine, HMM Co. is South Korea’s largest transportation and shipping company. Founded in 1976, the company has four international headquarters and 76 branches worldwide. The Company is engaged in the transportation of strategic materials including iron ore/coal and petroleum. In 2020, the company built the two largest container ships in the world.
7. ONE (Ocean Network Companies)
Total company TEUs in 2022: 1,527,159
Total number of company vessels (both owned and chartered): 203
The Japanese shipping company is the largest such company in the country. Founded just five years ago, it has grown rapidly and expects a profit of $12 billion in the last fiscal year.
6. Evergreen Sailor
Total company TEUs in 2022: 1,632,467
Total number of company vessels (owned and chartered): 206
The Taiwanese shipping company is easily among the largest in the world and is part of the Evergreen Group which provides all manner of shipping services. He is perhaps best known for his ship Ever Given stuck in the Suez Canal, which had a global impact on shipping. With a queue of 369 ships, an estimated $9.6 billion worth of trade was impeded.
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Disclosure: none. 15 Largest Global Logistics and Shipping Companies originally posted on Insider Monkey.