The shipping industry is undergoing rapid transformation – from the advent of AI to the upheaval of trade flows – which has inspired new trends as companies seek to navigate this evolving landscape. One notable trend is the wave of consolidation through mergers and acquisitions (M&As). In the dry bulk sector, 2024 saw at least six different M&A deals materialize, with the likes of Star Bulk completing its merger with Eagle Bulk, and Pangaea Logistics merging with MT Maritime, to name a couple. In the first few months of 2025, four such cases have already appeared, with CMB.Tech and Golden Ocean, Lauritzen Bulkers acquiring Canada’s Alexander Blake, NYK Group merging three of its shipping and ship-management companies to form NYK Bulkship Partners, and CMA CGM agreeing to acquire Borusan’s logistics subsidiary for $440 million.
What seems to be driving M&As, in part, is a globally tightening regulatory landscape, which is forcing stakeholders to find ways to become more cost-efficient and greener. The International Maritime Organization (IMO) has set an ambition to reach net-zero greenhouse gas emissions from international shipping by or around 2050. With indicative checkpoints for reducing GHG emissions by 20-30% by 2030 and 70-80% by 2040 relative to 2008 levels, it is imploring stakeholders to invest in greener technology – which often comes at a higher cost. For instance, TradeWinds reported that building an ammonia dual-fuel Newcastlemax bulk carrier could cost an additional $16-17 million compared to a conventional marine-fuelled newbuild.
As such, M&As have come to be an increasingly viable solution as they offer diversification, economies of scale, and greater access to resources. CMB.Tech achieved such diversification through its acquisition of Golden Ocean, which increased its dry bulk shipping exposure to 121 vessels from an initial 30. In the same vein, the merger of NYK subsidiaries into NYK Bulkship also primes them to leverage operational efficiencies via economies of scale.
The scale achieved through M&As also enhances a firm’s access to financing, as larger entities are perceived to carry lower default risk. This improved credit profile enables them to secure capital more easily.
Another important factor is the strong balance sheets many shipping companies now hold, thanks to the earnings boom during the COVID-19 period. Bloomberg highlighted this in a report describing how shipping companies “had a $150 billion year” in 2021 as a result of supply-demand imbalances triggered by the COVID-19 pandemic.
In today’s macroeconomic climate, it may be more economical for firms to acquire assets through M&As rather than through outright newbuild or secondhand purchases. As the tennis match of tariffs plays out on the global stage, shipping companies have become increasingly exposed to a drawdown in business. Investor sentiment has followed suit, with many pulling out of shipping stocks in favour of safer assets. This shift has led to declining valuations and, in some instances, a company’s net asset value (NAV) dipping below its share price. In such scenarios, well-capitalized firms are well-positioned to acquire undervalued assets through strategic M&A activity.
In the long run, this consolidation trend could culminate in an increase in oligopolistic behavior amongst vessel owners in the shipping industry. Smaller, more niche operators may find it difficult to compete with these behemoths, especially in an environment that demands greener, more expensive assets.