Industry Players Fear Container Alliances Hinder Competition

A recent survey conducted shows that Dutch businesses that ship cargo overseas are concerned about increasing monopolies in shipping.

Dutch shippers fear that container shipping alliances will hinder competition within the industry, says the European Shippers Council.

The conclusion came as part of an annual survey ordered by the Dutch Shippers’ Association (EVO) and conducted by the Rotterdam School of Management at Erasmus University Rotterdam.

The survey is reported to have asked respondents, which consisted of businesses that use deep sea carriers to ship their cargo overseas, to evaluate the degree of service levels of container liners they have conducted business with over the past twelve months.

The survey found that "competition issues" as a result of alliances and monopolies was by far the biggest issue, with 28 percent of respondents indicating it was their highest concern, significantly more than costs (8 percent), market stability (8 percent), and "other" - which was the second highest category of concern at 11 percent.

The carrier reported to have performed best on an overall basis in the survey results was Hanjin Shipping, which was awarded the EVO Container Liner Shipping Award 2015 as a result.

EVO says the annual survey, which is now in its fourth year, is intended to increase understanding of shippers’ needs, enabling stakeholders to find common opportunities and improving the dialogue between supplier and customer.

Earlier this month Ship & Bunker reported that the various container alliances are set for a shake up, following CMA CGM S.A. (CMA CGM)'s acquisition of Neptune Orient Lines (NOL), and the approval of the merger of China Ocean Shipping (Group) Co., (Cosco Group), and China Shipping (Group) Co.