Executive Briefings

CMA CGM, China COSCO Looking to Ally Against Maersk, MSC?

Shipping analysts Alphaliner reported that the two carriers involved in recent container line megamergers – France's CMA CGM (merged with NOL / APL) and China COSCO (merged with CSCL) – are now looking at forming a shipping alliance to compete with Maersk and MSC's 2M.

The firms look to involve Evergreen Line and OOCL, peeling off significant support from existing alliances Ocean Three, CKHYE and G6, which count among their members shipping lines that "could be facing financial distress," Alphaliner said. In addition to facilitating competition with 2M, the move would serve to insulate the members of the new alliance from the effects of a tough market on the weaker partners in the preexisting cooperatives. CMA CGM has already said that it will remove APL from the G6 alliance.

The proposed alliance would leave behind eight of the world's 20 largest carriers, including some facing significant headwinds, like Hyundai Merchant Marine and Hanjin.

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The firms look to involve Evergreen Line and OOCL, peeling off significant support from existing alliances Ocean Three, CKHYE and G6, which count among their members shipping lines that "could be facing financial distress," Alphaliner said. In addition to facilitating competition with 2M, the move would serve to insulate the members of the new alliance from the effects of a tough market on the weaker partners in the preexisting cooperatives. CMA CGM has already said that it will remove APL from the G6 alliance.

The proposed alliance would leave behind eight of the world's 20 largest carriers, including some facing significant headwinds, like Hyundai Merchant Marine and Hanjin.

Read Full Article