Shreyas explains why feeder lines have to consolidate

It’s not just at the top of the container leaderboard where consolidation is necessary to survive; the world of feeder operators is also coming under tremendous pressure.

Putting some flesh on the bones to the deal, Shreyas Shipping and Logistics, part of the Transworld Group, explained the rationale for the deal in a release to the Bombay Stock Exchange.

Shreyas Shipping and Logistics’ EBITDA has declined by around 60% since 2018, with the company citing an inability to grow revenues in line with costs in an “increasingly competitive environment”.

“Greater scale together with a robust network of in-land terminals, port and marine infrastructure is critical to delivering efficiencies to the customer,” Shreyas Shipping and Logistics stated, adding: “Such scale could only have been accessed inorganically”.

Further feeder consolidation is in the offing across the world with X-Press Feeders, close to being toppled off its top spot, readying its own acquisitions.