Decarbonizing Korean Shipping (1-3): The State of the Industry Today

The third installment of the series examines how global shipping restructured through a decade of low freight rates and then pandemic-era profits — and how decarbonisation regulations are now reshaping competitive strategy.

A Decade of Overcapacity (2010s)

After the 2008 financial crisis, the Baltic Dry Index — which had peaked at 11,793 before the crash — fell below 1,000 and stayed there for years. Container ships faced the same oversupply crisis: carriers ordered giant vessels to lower unit costs, but demand couldn't absorb the new capacity, sending freight rates into freefall.

COVID-19 Windfall

The pandemic first disrupted ports and logistics, then triggered an unprecedented boom as US and European consumer spending surged. The Shanghai Containerized Freight Index (SCFI) rose several times above pre-pandemic levels. Global carriers posted record profits.

The Alliance Shake-Up

The prolonged depression of the 2010s forced a wave of mergers and alliance restructuring driven by economies of scale. The 2M alliance (Maersk + MSC) was the defining partnership — until it wasn't. Post-pandemic, divergent strategies pulled the two apart: Maersk pursued integrated logistics (ports, warehouses, inland transport); MSC aggressively expanded its fleet to become the world's largest carrier. 2M formally dissolved in 2023.

From 2025, the industry settled into a new 3+1 structure: Gemini Cooperation (Maersk + Hapag-Lloyd); Ocean Alliance; Premier Alliance (successor to THE Alliance, including HMM); and MSC operating independently.

Decarbonisation as Strategic Variable

The 2023 IMO GHG Strategy raised the ambition: net-zero international shipping by around 2050, with intermediate targets of −20–30% by 2030 and −70–80% by 2040. The EU simultaneously brought shipping into its Emissions Trading System and launched FuelEU Maritime (2025), mandating a step-by-step reduction in fuel GHG intensity — 2% below baseline by 2025, 80% by 2050.

Gemini Cooperation's hub-and-spoke strategy — reducing port calls to concentrate on a small number of mega-hubs — is partly a decarbonisation play. Hapag-Lloyd states explicitly that precise scheduling cuts waiting time and therefore fuel burn. Maersk, which has publicly committed to net-zero by 2040, needs its own hub ports to be equipped with green bunker infrastructure.

Vertical Integration and Port Control

Major carriers have extended their reach to terminal operations: Maersk/APM Terminals, MSC/TiL, CMA CGM/CMA Terminals. As GHG regulation tightens, terminal control is becoming a tool to manage scope-3 emissions, guarantee green fuel supply chains, and offer shore-power (AMP) to docked vessels. Large shippers — Apple, IKEA, Amazon — are increasingly scrutinising the carbon footprint of their sea freight, accelerating this integration trend.

Third article in the 13-part series co-produced by ClimateInFact and PLANiT.