Taking over the global supply chain through vertical integration is not something that happens overnight. Shipping hegemons MSC in Australia and Cosco in Germany have completed the latest strategic acquisitions in this step-by-step process. Both companies continue expanding into intermodal operations beyond their container shipping lines.
MSC acquired Australian company Seaway, stepping into Australian rail freight operations through the firm's intermodal division. Seaway provides integrated inland transport services through rail terminals, trains, and truck fleets. The acquisition reflects MSC's backward integration strategy following its global port terminal network (TIL, a separate subsidiary).
Cosco took a similar step in Germany. The Chinese line is investing for intermodal connections and terminal access in the heart of Europe. These developments clearly illustrate the trend of a single carrier managing sea, terminal, and inland transport under one roof. Analysts stress that vertical integration is creating an increasingly difficult competitive environment for independent freight forwarders. Shippers, meanwhile, weigh the advantage of end-to-end service from a single carrier against concerns over price transparency.
Key Takeaways:
1. MSC and Cosco continue global intermodal expansion through vertical integration.
2. MSC entered rail freight operations by acquiring Australia's Seaway.
3. Cosco invested in intermodal connections and terminal access in Germany.
4. A trend is emerging of single carriers managing sea, terminal, and inland transport.
5. Competition is becoming increasingly difficult for independent freight forwarders.
