Wednesday, February 17, 2016

NEW CONTAINER LINE ALLIANCE

New alliance--CMA CGM & COSCO--plus EMC and OOCL to battle 2M. Apollo Creed vs Rocky Balboa.  What will it mean to shippers and their supply chains?




Report: New ocean carrier "mega-alliance" planned

CMA CGM plans to bring the merged COSCO-CSCL into a new vessel sharing alliance on the major east-west trades that would rival the 2M Alliance of Maersk Line and Mediterranean Shipping Co., according to a report from industry analyst Alphaliner.

   A report in the latest Alphaliner newsletter contends, “A new mega alliance appears to be in the making, as CMA CGM and China COSCO lead efforts to set up a new carrier partnership. Seeking to also rope-in Evergreen and OOCL, the plan could potentially split up three of today’s four main East-West alliances.”
   It said the combined capacity of the carriers would create an alliance bigger than the 2M Alliance of Maersk Line and Mediterranean Shipping Co. (MSC).
   American Shipper was unable to confirm the report with either COSCO or CMA CGM.
   Rodolphe Saad√©, vice-chairman of CMA CGM, said in December, when the CMA CGM acquisition of APL parent Neptune Orient Lines was announced, that his company intends to make APL part of the Ocean3 Alliance it operates in with China Shipping Container Line (CSCL) and United Arab Shipping Company on the major east-west trade routes.
   Alphaliner is reporting that  CMA CGM has “also commented that it hoped that COSCO-CSCL will join the Marseilles-based carrier in a new alliance partnership."
   "However," it noted, "COSCO has not yet revealed any post-merger alliance plans to follow the acquisition of CSCL’s container shipping operations, due to be finalized by the end of February.”
   “While the new alliance’s final composition could still change, the driving factor behind the proposed four-carrier ’CCEO’ setup is clear," said Alphaliner. "The motivation is to from a strong and stable alliance that could challenge the 2M’s dominance in the East - West trades and to distance the ’CCEO’ from some of the weaker partners within the current alliances, which could be facing financial distress.”