SNSC described 2M as “a cut above” the failed P3 alliance with a vessel sharing agreement that has less than 30% market share of the total trade.
However, it also warned as how the arrangement could be abused if regulators do not keep a close eye on it. “We realise such agreements can so easily serve as backdoors for shipping lines to fix rates to fix freight rates,” SNSC stated.
SNSC has long campaigned against liner conferences and other such arrangements, which remain legal in most countries in Asia.
Singapore shippers’ were concerned as to how 2M could grow to take a larger market share after its initial approval. “Equally we are concerned as to how alliances can change as shipping lines know full well the benefits of size. We have seen this in G6 and CKYHE.”
CKYH recently added an “E” which was Evergreen while G6 is an alliance of alliances combining two existing groupings of lines.
“We should be guarded against the possibility of 2M morphing into 2M++,” SNSC warned. “We ask the regulatory authorities in China, Europe and the US to maintain vigilance and monitor developments,” it added
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