The 2M the vessel sharing agreement between Maersk Line and Mediterranean Shipping Co (MSC) recently unveiled its service network which will be phased in from mid-January.
Oceans Three the new alliance CMA CGM, United Arab Shipping Co (UASC) and China Shipping is also planning a mid-January start.
The enlarged CKYHE alliance including Evergreen has received approval from the US Federal Maritime Commission, and G6 is expanding its coverage.
So what will this brave new world of partial consolidation into four major groups sharing space and vessels bring to container shipping?
On one side it increases the number of services lines can offer. In the age of the ultra-large container ship (ULCs) running an effective network covering all major load ports and destinations requires a massive undertaking, and even the biggest Maersk and MSC have decided they cannot do this alone, despite an existing number of single trade bilateral agreements.
In many ways this is good for the shipper, they get more choices and more departures from dealing with a single line, but at the same time their choice in terms of who they ship with has been effectively reduced.
There are questions of reliability comparisons and much as with code sharing on airlines not everyone wants to book on an airline by name but in reality travel on another, especially if they are paying a premium for the one they actually booked on.
Those in the container shipping industry hoping these arrangements will boost rates could well be disappointed. In many senses alliances just emphasise that all lines are really the same regardless of the value-added service offerings they might hope to distinguish themselves with.
Maersk has already warned of continued years of a low rate environment and has instead focused on optimising its operations to drive efficiencies to drive its margins.
The lower bunker price, would help all bit as long as it lasts, but is factor completely outside the control of the lines. However, will the new mega-alliances with mega-ships prove a panacea for container shipping’s margin woes? That would unfortunately seem unlikely.
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