World News
CMA CGM Seeking New Partners
After the collapse of the planned P3 alliance and the decision by Maersk Line and Mediterranean Shipping Co. (MSC) to form their own partnership without it, France's CMA CGM SA is reportedly seeking partners for its own alliance, the Wall Street Journal reports.
"CMA CGM can't really compete on its own against the combined capacity of Maersk and MSC, so they are looking for partners to form a similar alliance, especially in the Asia-Europe trade loop," said one source with knowledge of the situation.
"Preliminary talks with European, Middle East and Asian carriers are already on and I expect a deal over the next couple of months."
Sources pointed to China Shipping Container Lines (CSCL) and United Arab Shipping Co. (UASC) as likely partners for CMA CGM.
The Maersk Line-MSC alliance, known as 2M, will carry about 35 percent of the goods moved between Asia and Europe using 185 ships.
Lars Jensen, chief executive of SeaIntel Maritime Analysis, said that CMA CGM will need its own vessel-sharing deals to compete.
"UASC and CSCL will be the most fitting partners for CMA CGM," he said.
CMA CGM has already worked with CSCL and UASC, including in its Asia Southern Red Sea Express (REX3) service, announced in March.
Maersk Line has said the 2M alliance is likely to be received more favourably by Chinese regulators than P3, partly because it is only a vessel sharing agreement and does not involve an operating company.
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