After a recent flurry of container shipping-line alliances, those that weren’t involved in the recent waves of restructuring are discussing a vast new grouping with the US Federal Maritime Commission. Discussions between carriers have remained highly secretive, with those involved guarding their identity. The most recent deal to be struck was the “Ocean Alliance,†which CMA CGM joined along with COSCOCS, Evergreen and OOCL. Industry leaders Maersk and MSC remain in their “2M†alliance, with no signs as yet that the pair – which have a 28% share of the liner market – are due to join any of the others. Today’s new alliance will include most of the global carriers left out of 2M and Ocean Alliance. Anyone left out in the cold now will have to concentrate on smaller, regional trades.
A formal announcement on the latest proposal is expected today, Friday 13th May 2016. The new alliance will likely involve Japanese liners Nippon Yusen Kabushiki Kaisha, K Line, Mitsui O.S.K. Lines Ltd, German liner Hapag-Lloyd AG and South Korea’s Hanjin Shipping Co and Hyundai Merchant Marine Co.
Just how much market share the latest alliance will have is unclear at present. But it could not possibly top the vast share of “2M’ partners Maersk and MSC (who could have had an even larger slice of the pie if China had proceeded with its 2014 proposal to involve third-largest liner CMA CGM in its plans).
Carriers that have not yet joined new alliances include UASC, HMM, Mitsui and Hamburg Sud. Alliances are now going to be vital for liners to achieve economies of scale. With global demand sluggish, overcapacity looks to remain a major issue for the foreseeable future.
Â
Source: www.porttechnology.org
