Mediterranean Shipping Co (MSC) has reached seven million TEU in vessel capacity, with the eight largest carriers now controlling more than 80 percent of global supply, according to Jeremy Masters, managing director of Hong Kong's Shipping Masters.

Writing in New York's Journal of Commerce, he also stated: 'Smaller carriers no longer realistically aspire to join the big leagues without deep pockets. Yet by staying nimble, lean, and customer-focused, they can avoid being trampled and quietly grow.'

Mr. Masters noted that intra-Asia trades remain particularly viable, with lean organizations and niche products allowing midsize carriers to thrive while larger rivals focus on wayport legs. Differentiated, client-focused services are key to survival.

'The gap between MSC at No. 1 and Yang Ming at No. 9, with 725,000 TEU, is stark. By No. 15, KMTC operates only 160,000 TEU. Larger carriers have absorbed second-hand tonnage, tightening supply and driving up charter prices,' he explained.

Mr. Masters also pointed out that MSC subsidiary Terminal Investment Limited aims to become the world's largest terminal operator. Maersk, CMA CGM, Cosco, Hapag-Lloyd, Evergreen, and Ocean Network Express also hold significant terminal capacity and continue to expand.

While big carriers have widened into logistics, they lack dominance in that sector. Their control of ocean capacity, container handling, and inland delivery makes competition difficult for smaller lines, he said.

Beyond Zim, Wan Hai, and Pacific International Lines, which rank 10 to 12, most of the top 30 carriers are regional or feeder operators. Their fleets are concentrated in the 1,000- to 8,000-TEU range, with many below 3,000 TEU.

Unlike the majors, midsize carriers often rely heavily on either owned or chartered fleets, creating volatile slot costs. This leaves them exposed in major trades when rates fall.

Smaller carriers can still join long-haul trades opportunistically, as seen on Asia-North America West Coast, but risk collapse when cargo is scarce. Their best prospects lie in sub-8,000-TEU trades where costs are competitive.

Successful midsize carriers often build from regional strongholds, such as the Mediterranean or Southeast Asia, where connecting cargo flows provide stability. Choosing less-populated port calls also helps, such as linking Ringaskiddy, Ireland, with Wilmington, North Carolina.

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