Cotton Shipping Industry Continues to Consolidate

“Structural Change in the World Cotton Industry,” a study released in February by the International Cotton Advisory Committee, concludes that while the “cotton shipping industry still remains highly competitive, the number of companies in the largest and large categories fell over the past several years.”

According to the study, the estimates for 2009 indicate that there are currently 10 organizations in the largest category — those with annual volumes of international trade of more than 200,000 tons. The largest group traded 6.2 million tons, or 26 percent of world production. In 2008, there were 13 organizations in the largest category, handling 7 million tons, or 27 percent of world production. The first study conducted in 1994 indicated that the 19 largest cotton organizations handled 6.8 million tons, or 36 percent of world production.

As of 2009, four of the world’s largest cotton trading organizations were based in the United States, and there were one each in China, Japan, Singapore, Switzerland, United Kingdom and Uzbekistan.