CMA CGM to Form French-Asian Mega Alliance

In a move which is said to challenge the market dominance of 2M, which is currently the world’s largest shipping alliance, Cosco and CSCL, with Evergreen, CMA CGM and OOCL are set form their own mega alliance that is anticipated to dominate the East-West trades, and would mean that, out of a total of four East-West alliances, only 2M will remain unchanged, according to The Loadstar.

This follows news that CMA CGM had attended a meeting in Shanghai, in which the world’s third-largest carrier discussed the possibility of a mega shipping alliance with China Cosco Shipping Corporation, which is made up of Cosco and CSCL.

CMA CGM said: “The potential insolvency of two Korean carriers and any potential restructuring arising from an (enforced) merger could undermine the service networks of the CKYHE and G6.”

Technical Paper: Tackling the Biggest Alliances

Alphaliner said: “Various partnership scenarios are being contemplated and, given the prevailing uncertainties, the carriers are keeping all options open at this stage.”

The move could lead to some carriers, who are already part of an alliance with the proposed French-Asian members, being left without partners to continue doing business with.

United Arab Shipping Company would be the only carrier left in the O3 alliance if CMA CGM and CSCL go on to form the new alliance.

In turn, this could lead to the remaining shipping lines forming their own mega-alliance in a bid to compete, which could have an effect on ports and terminals.

Cosco, who is in the process of merging with China Shipping Container Lines, has recently said that collaborating with other carriers is crucial for development in the face of industry dwonturn.