World News
Maersk Line : Alliance Shakeup Will Cause Year-Long Disruption
Market disruptions in the year ahead can be expected as a coming shakeup of the membership of three of the world's four big global container ship alliances follows on recent merger and acquisition activity, JOC reports.
The prediction was expressed by Maersk Line chief trade and marketing officer Vincent Clerc at a recent conference.
"The redesign of networks of the magnitude they are talking about will be disruptive for the customer in the short term because if a carrier moves from one alliance to another both alliances need to redo their networks," Clerc, was quoted as saying.
Cosco and China Shipping merged, while CMA CGM acquired NOL and its container carrier APL; as a result the CKYHE Alliance, the Ocean Three Alliance and the G6 Alliance, will all undergo restructuring according to the report.
"Capacity will vary from week to week for a while and products will change and so on. But in the long run, it all depends on the network choices that each of the alliances makes, so it could be good," Clerc reportedly said.
The stability of Maersk's 2M Alliance with Mediterranean Shipping Co could give these two companies a "leg up" on the competition over the year to come as the other alliances focus on their restructuring.
The report also noted that Clerc thinks carriers have realized that the "double-digit annual growth levels" that defined the shipping industry prior to the Great Recession of 2008-2009 are not going to return; cost savings will instead have to come through consolidation in alliances or mergers and acquisitions according to the report.
"The trend is toward more subdued growth. In this world, being able to create synergies and lower costs is actually an imperative to be successful in this industry," Clerc reportedly said.
In February of 2016 Ship & Bunker reported that CMA CGM and China Cosco are looking to solidify a new "mega-merger."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
Popular Now More
-
Jun 05Marex's Bastien Declercq discusses how biofuel markets are likely to react to the IMO's new GHG regulation. -
Jun 04The MPA has not directly given a reason for declining to renew the licence. -
Jun 02The new joint venture will initially focus on biofuel supply in northern Europe, BlackCoral Energy Managing Partner Jesper Christensen tells Ship & Bunker.