In 1892, Ellerman made his first move into shipping by leading a consortium which purchased the Leyland Line from the late Frederick Richards Leyland, one of the largest shipowners in Britain. In 1901 Ellerman sold this business to J.P. Morgan for £1.2 million, who immediately folded it into the International Mercantile Marine Co.. Ellerman, however, immediately began to buy other shipping lines, and in 1902 he combined his interests into Ellerman Lines. He continued to expand the business, making inroads into the South African, Atlantic and Indian routes while buying rival lines on a regular basis.