Cosco-China Merger to Spark Alliance Lockdown?


The proposed merger between Cosco and China Shipping has caused a stir in the shipping industry amid concerns that the new pairing will have a huge impact on the alliances that each company is already a member of, according to Splash 247.

Cosco is currently a member of CKYHE and China Shipping belongs to Ocean 3, with officials stating that only time will tell how much of an impact this will have on the container shipping market.

The two companies were recently ordered to form a partnership by the Chinese government as a way to counteract poor market conditions.

Zhen Hong, an expert at Shanghai International Shipping Institute, said: “It’s hard to say if the merger between Cosco and China Shipping would have much influence on the international container trade scene considering the volatility of the sector, the long restructuring process and the restructuring mode, but if they do merge together, they will definitely have a bigger say in the sector.”

There are also concerns that the merger will create less employment opportunities, particularly through the reduction of available management roles.

Cosco and China are currently ranked sixth and seventh, respectively, in the world’s top 30 container lines and both account for more than 4% of global volumes.

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