The main mode of transport for global trade is ocean shipping: around 90% of traded goods are carried over the waves. Ocean shipping is also part of a larger maritime cluster in its position as buyer and customer. 

The shipping sector buys ships, sustains the shipbuilding industry, and uses ports, terminals and logistics services. Such maritime clusters are considerable sources of economic value and jobs. 

Industry leaders are huge international companies with tens of thousands of employees in the shipping sector itself, but hundreds of thousands when you can count all the supply chain. These conglomerates are the first to readjust their prices to inflation, usually way above its level therefore increasing their margin. Average freight shipping costs are up 600% from the pandemic lows. Commodity-wise, shipping prices have more than doubled YTD based on geopolitical instability (Black Sea remains closed for freight ships and most companies avoid Barents Sea). 

Globally, and more significantly with the recent protests in China, there is a clear trend to post COVID “return to normality” and increase of supply.

MAERKS is one of the world leaders in shipping with over 80’000 employees and a 16%+ of global market share. Recent balance sheet shows a +60% YoY increase in revenue, from 5.4B$ in Q3 21 to 8.9B$ in Q3 22. Despite winding down its operations in Russia in the beginning of the year the company has just raised its profitability forecast for the second time this year alone. Its new facility in Bangladesh is seeking to reinforce Maerk’ presence in India – huge market as it is set to become the worlds largest populated country in 2023.

COSCO SHIPPING, is the largest Asian shipping company and is currently positioned 4th worldwide with a solid 11% global market share and 30’000+ employees. Victim to the USA/China trade war in late 2021, but neutral towards Russian/Ukrainian crisis, this leads the company to increased volumes from the region, including parallel import. With a solid cashflow and a revenue of 14B$ in September 22 alone (+15% YoY) the company is looking forward to take full advantage of growing demand and reduction in oil prices as historically, Chinese companies have a harder time hedging oil risks than European counterparties.