Chinese state-run shipping lines Cosco and China Shipping Container Lines (CSCL) have announced an expected date for its merger to begin operations and will happen around March 1 and is in line with a recent announcement by CSCL that its assets will be combined in early 2016, according to the Journal of Commerce.
The two container lines will be operating as a new entity which will entail ship leasing and the swapping of assets under the new deal.
Cosco will be managing container shipping operations while CSCL will be focusing primarily on ship leasing and financing.
Each shipping company’s prospective alliance will also likely be affected, as will port calls and the pressure placed on ports and container terminals to handle increasing volumes.
Once completed, the two shipping companies will climb the rankings to become the fourth largest shipping company globally.