Alliances could revolutionize an entire industry

If the authorities approve the two major alliances, P3 and G6, the move would only represent the tip of the iceberg in the container industry, says analysts Drewry.

The container carriers' ambitions of securing economies of scale through larger alliances will have far-reaching consequences for the entire industry, consequences that the competition authorities in the United States, the EU, and China could have difficulties agreeing upon. The establishment of the P3 alliance with Maersk Line, MSC, and CMA CGM, the three biggest carriers in the world, and most recently the heavily expanded cooperation among the six carriers in the G6 alliance merely represent the tip of the iceberg, according to analysts Drewry.

"The G6 Alliance’s proposed expansion into the Asia/West Coast North America and North Europe/East Coast North America tradelanes in 2Q 2014 is just another step in the current process of ocean carrier schedule rationalisation. More is set to come, including the merging of services, should it be approved by regulatory authorities. Greater economies of scale are required to compete against the P3 alliance and/or make a profit," says Drewry in its Container Insight Weekly.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

SDK Freja anticipates steep earnings drop following record year

Logistics company SDK Freja, which delivered record financials with great advancement on top and bottom lines, takes a more gloomy view of the current fiscal year due to several ”external factors.” However, the growth target remains the same, CEO tells ShippingWatch.

LNG carriers concerned about increasing ship prices

The price on new LNG vessels has soared vigorously, and for Flex LNG this has meant a withdrawal from the market for new ships. Such was the statement by Flex LNG’s chief exec at Marine Money in New York, where he also announced new long-term charter agreements.

Maersk ships delayed up to three weeks on US east coast

Bottlenecks at major container ports on the US east coast have entailed that Maersk vessels are affected by delays of up to three weeks. It’s a combination of congestion, many ships, and a lack of container space, Maersk says.

Further reading

Related articles

Latest news

See all jobs