News / Liner integrators – Taiwan’s big three have 'no ambitions in that direction'

20/01/2022

Taiwan’s big three liner operators, Evergreen, Yang Ming and Wan Hai, say they will focus on their core business of container shipping and are not eyeing 3PL acquisitions, as MSC, Maersk and CMA CGM have done.

Evergreen and Yang Ming hold regular conferences with stock analysts and journalists and their management executives were asked this month if they hoped to buy logistics companies.

In December, MSC, Maersk and CMA CGM, the three largest liner operators, acquired, respectively, Brazilian logistics company Log-in Logistica, Hong Kong-based LF Logistics and US logistics company Ingram Micro CLS.

MSC has also made a $6.4bn bid for Bolloré Logistics’ African ports division, reportedly tempted by its access to the African logistics market and container terminal concessions at 16 box facilities at Ghana, Nigeria, Cameroon and Togo, among others

Evergreen president Eric Hsieh said the firm had no wish to emulate Maersk, whose CEO Soren Skou said the Danish giant aimed to become a global integrator. He said: “We have our own logistics subsidiary [Evergreen Logistics Corp], which will continue to expand globally. There’re no plans to acquire other logistics businesses.”

And Yang Ming general manager Du Shu-chin said every company’s plan was different and the market would be watching Maersk’s strategy.

He added: “Role differentiation between shipping companies and the logistics industry is a mutually beneficial relationship. We must carefully review whether it’s necessary to vigorously develop the logistics business. Yang Ming already has a good international logistics service and will continue to expand its business.”

Du Shu-chin, GM, Yang Ming

Wan Hai told The Loadstar the company did not intend to acquire 3PL companies and preliminary estimates showed that, last year,, it generated an all-time high revenue of $8.23bn, as congestion on the US west coast drove up rates.

However, Wan Hai’s earnings from its core intra-Asia business fell as more operators added capacity to the tradelane.