World News
G6 Alliance Struggling with Smooth Integration of East-West Networks
The G6 alliance has hit difficulties in smoothly integrating the six members' East-West networks, The Loadstar reports.
The mega-group, which was established in 2012, includes American President Lines (APL), Hyundai Merchant Marine (HMM), Mitsui O.S.K. Lines, (MOL), Hapag-Lloyd, Nippon Yusen Kabushiki Kaisha, (NYK Line), and Orient Overseas Container Line (OOCL).
At the time, the deal saw the members of the New World Alliance (NWA) and the Grand Alliance (GA) merge, with the resulting G6 agreement aiming to jointly operate 90 vessels on the Asia-Europe trade lanes.
Hapag-Lloyd chief executive Rolf Habben Janssen was quoted as saying he had not been "super-satisfied" with its membership of G6.
Among a list of current troubles was said to be the fact that four out of six members recorded losses in 2014, while a prolonged labour dispute in U.S. West Coast ports also report to have exacerbated the operational challenges of joining multiple shipping lines that operate out of seven different terminals in Los Angeles and Long Beach.
Industry criticism has also pointed to the number of participants, all with different company philosophies and geographical priorities.
The G6 alliance is currently set to expire in 2016.
Last week, Janssen was also reported as saying that the G6 would be key for the company, as it has the best coverage across all trades compared to other alliances such as 2M and Ocean Three.
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