CMA CGM Confirms Alliance Talks
CMA CGM Vice-Chairman Rodolphe Saadé confirmed talks between the French container shipping line and potential partners regarding the future of its alliances, says WSJ.
Saadé told the Journal that “we are becoming a larger shipping line (after Neptune Orient Lines or NOL acquisition) and we are in the position to select the partners with whom we want to do business.”
"We are discussing with the new China Shipping Group, but we also discuss with others," he says.
Saadé did not give any specifics of the firm’s talks. But as reported by MarineLink (See CMA CGM - COSCO Mega Alliance to Shake-up the Industry?) quoting Alphaliner, CMA CGM was discussing a mega-alliance with the newly merged Chinese line COSCOCS, Taiwan's Evergreen and Hong Kong-based OOCL.
Its current O3 alliance – with UASC and CSCL – dissolves at the end of 2016.
The proposal would hurt the prospects of some existing alliances by taking away financially stronger members.
According to informed sources CMA CGM held a meeting in Shanghai in early February, with an agenda for a new French-Asian alliance. Supposedly it was not only the newly merged China COSCO Shipping Corporation, which was presented as a possible partner, but also OOCL was part of a new alliance option.
Saadé said. “There are many rumours in the market about who we are talking to,” he said. “In our industry everybody talks to everybody.”
Strong alliances are central to filling those ships, Saadé said.
