NEWLY merged China Cosco Shipping and France's CMA CGM, about to swallow APL, are reportedly planning a new shipping alliance to rival Maersk and MSC's 2M that runs 193 box ships totalling 2.1 million TEU.
NEWLY merged China Cosco Shipping and France's CMA CGM, about to swallow APL, are reportedly planning a new shipping alliance to rival Maersk and MSC's 2M that runs 193 box ships totalling 2.1 million TEU.
According to French maritime analysts Alphaliner, Cosco and CMA CGM are also looking to tie in to their "French-Asian Alliance" Hong Kong's Orient Overseas Container Line (OOCL) and Taiwan-based Evergreen Line.
The group would then boast an aggregate container shipping capacity of three million TEU spread over their combined fleet, reported China Daily.
Shipping industry professor at Shanghai Maritime University, Dong Liwan, said the plan could potentially split up three of the existing four main East-West alliances ?2M, O3, CKYHE and G6.
"If completed, the proposal would effectively rearrange the current shipping line map, and leave other remaining carriers of the O3, CKYHE and G6 alliances in a swayable situation," Mr Dong was quoted as saying.
The O3 alliance composes the old China Shipping, CMA CGM and United Arab Shipping Co. CKYHE is made up of the previous Cosco, "K" Line, Yang Ming Marine, Hanjin Shipping and Evergreen Line, while the G6 groups together OOCL, APL, Hapag-Lloyd, Hyundai Merchant Marine, MOL and NYK Line.
China Cosco Shipping has brought together China's two biggest state-owned shipping conglomerates: China Ocean Shipping (Group) Co and China Shipping (Group) Co.
Deputy director of transport planning at the Institute of Comprehensive Transportation at the National Development and Reform Commission, Yin Zhen, said CMA CGM is keen to form an alliance with China Cosco Shipping, after an earlier proposal by the P3 alliance, made by Maersk Line, MSC and CMA CGM, was rejected by the Chinese government in 2014.
"China Cosco Shipping wishes to form a stronger alliance that can challenge 2M's ascendancy in the East-West trading route, as well as cut connections with certain weak partners within the current alliances to prevent further financial losses," said Mr Yin.
A company spokesman from China Cosco Shipping's headquarters in Shanghai said its two constituents will remain within these two other alliances, until China Cosco Shipping has fully completed its integration process.
"Forming a bigger union can effectively offset lower volume growth and overcapacity. China Cosco Shipping will choose future partners carefully to establish a powerful shipping alliance amid current global trade and industrial setting," the spokesman said.
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