Without container shipping, global commerce would not be nearly as successful as it is today. In the middle phases of trans-oceanic shipping, between the 1990s and the early 2000s, 90% of general cargo was being delivered via cargo ships. The top fifteen companies of the industry were dominating 80% of the total volume. Meli Marine saw lots of opportunity to expand and began to wonder if acquisition would be a good move for them in order to expand into the Asian-North America oceans. The industry has trends that lead us to think that expansion is not the right choice, for now. The costs would be a major one simply because so much of it is dependent upon the price of fuel. And nearly all the costs leftover are from fixed costs which doesn’t leave much room for negotiation. After analyzing Meli Marine, the current market, and its competitors, we believe expansion is not in the best interest of Meli Marine for several reasons.


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