Shippers’ Forum Scrutinises ‘Super-Alliances’

 03 Mar 2016    Cargo Volumes and Throughput, Carriers, Global Economy/Trade, Port Governance

Since the formation of the top 20 shipping lines into four ‘super alliances’, the Global Shippers’ Forum (GSF) has requested the creation of a Maritime Industries Supply Chain Forum which could address the challenges facing the liner shipping industry, according to Lloyds Loading List.

GSF said in a statement: “The introduction of larger ships does not deliver the proposed benefits to cargo owners.” 

Read: Are Liner Alliances Working?

Chris Welsh, Secretary General for Global Shippers Forum said, “We believe cooperation between the main international stakeholders in a new maritime industries forum would enable the wider maritime supply chain to develop solutions to the problems presented by bigger ships and alliances in a constructive and consensual manner.”

Read: Will New Mergers Impact the Supply Chain?

At a time when overcapacity is flooding the industry, liners have grouped together to achieve economies of scale, however this has left ports struggling with capacity peaks and troughs.

China recently moved to conjoin to of its major shipping lines, CSCL and Cosco. The merged liners are now known as COSCOCS.

As CSCL and Cosco were part of separate alliances, the make-up of their respective alliances has been broken.

It has recently been reported that COSCOCS is now in talks with CMA CGM to form a new mega-alliance along with OOCL, Evergreen and Islamic Republic of Iran Shipping Lines.