Meli Marine Essay
B U S I N E S S
S C H O O L
A f ' K I L 19. 2013
It was past midnight, but David Tian, CEO of Singapore-based Meli Marine, could not sleep. The next board meeting was just two weeks away in early February 2008. Edwin Chang, the founder of the company and chairman of the board, had called earlier to hear Tian's assessment of a potential acquisition. "This could be.1 the biggest turning point in Meli's history," Chang had said. "Are we ready to become a global pLiyer?" Tian had to admit that ho had not yet reached a conclusion.
The acquisition under consideration was of the vessel assets of an indirect competitor, Teeh-Sah …show more content…
While there were over 100 container carriers globally, the industry had consolidated, with the top 15 players accounting for approximately 80% of volume, concentrated primarily in the Asia-Europe and
Asia-North America shipping lanes.
Challenges in the Container Shipping Industry
"I cannot think of a better way to get ulcers," Tian liked to joke about leading a container carrier company. "The faint of heart need not apply." Through four decades in shipping, he had seen the industry endure dramatic swings in profitability and the occasional demise of weaker competitors during periods of economic turmoil. While Meli Marine had been consistently profitable since Tian's
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