News / Control of Wilson Sons could boost MSC dominance in Brazil

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MSC’s acquisition of Brazilian operator Wilson Sons has raised eyebrows among forwarders in the region, although some see opportunities.

London-based Ocean Wilson Holdings confirmed yesterday it had reached an agreement to sell its 56.47% stake in the Brazilian business to MSC’s port subsidiary, Shipping Agency Services. (For more detail on the numbers, go to Loadstar Premium.)

Responding to the news, one forwarder in the region told The Loadstar: “There’ll be effects on forwarders. If we’re looking for upshots, one could be that it leads to improved efficiencies in port and logistics services, and this would benefit the region as it would bring operations into a more integrated environment that would reduce the congestion.”

However, the forwarder warned it would only further increase MSC’s dominance, which could risk a loss of customers’ bargaining power with carriers that would only serve to push rates up.

Primarily a tugboat operator, Wilson Sons also operates container terminals in the states of Bahia and Rio Grande do Sul, two shipyards, offshore support vessels and a logistics centre.

The forwarder source sees potential benefits from the deal – “an opening in the form of a partnership with MSC that would include use of its global network”.

And, on what the deal would do for Brazil’s supply chains, the source said: “It may alter the competitive landscape if companies have to steer clear from shippers and find new port and transport options.

“It may also mean price structures have changed, and possible fee increases for companies.”