CMA CGM and China Cosco Shipping’s proposed mega-alliance is seeking to acquire another two shipping companies which would provide them with another estimated 3 million TEU, according to Marine Link.
A spokeswoman for COSCOS said, “The new group will choose its future partners carefully, and is committed to building a strong and competitive alliance.”
In an industry wrought with overcapacity alliances have become a way for carriers to keep their heads above water, yet with an increasing order book and a flat global economy, the industry looks to be in for a tough year.
China Shipping, or ‘COSCOCS’, is the new acronym for the merged entities CSCL and Cosco, the two carriers that united and became the most powerful Chinese shipping line.
The merging of the two carriers means that current alliances will definitely be affected.