Impending Shakeup of Global Shipping Alliance
According to WSJ report, deals involving Cosco, China Shipping, CMA CGM and Neptune Orient Lines to bring major changes in global shipping alliances.
China Cosco Shipping and CMA CGM are hoping to form a new alliance with OOCL, Evergreen Line, and Islamic Republic of Iran Shipping Lines, according to sources in the Chinese shipping industry.
According to the Alphaliner, CMA CGM and Cosco are leading efforts to create a new vessel-sharing alliance that could include Evergreen Line and OOCL and would shake up three of the four major east-west carrier groupings.
CMA CGM’s plans to bring APL into the O3 Alliance once the NOL acquisition is done has put the spotlight on the G6 Alliance. CMA CGM SA also is seeking regulatory approvals by all three regulators for its $2.4 billion acquisition of Singapore’s Neptune Orient Lines Ltd., announced in December.
China Ocean Shipping Co., or Cosco, and China Shipping Group Co. are trying to get their recently completed merger approved by European Union and U.S. regulators. The Chinese watchdog already has given a thumbs-up to the merger.
William Doyle, a commissioner at the U.S. watchdog, the Federal Maritime Commission says: “Chances are that the alliances you see today will change significantly over the next two weeks.” The alliances have in fact changed already because of the recent consolidation among four major carriers, he said.
