Ocean cargo/global logistics: Maersk Line rejoins Transpacific Stablization Agreement
After trying to go it alone with its own pricing strategy, carrier is falling back into shipping’s last remaining cartel.
Patrick Burnson -- Logistics Management, 11/9/2009
SAN FRANCISCO—After trying to go it alone with its own pricing strategy, Maersk is falling back into shipping’s last remaining cartel.
A prolonged global recession and aggressive collective pressure put on by other carriers in the trade has forced Maersk to give up on its dream of autonomous operation. Five years after quitting the Trans-Pacific Stabilization Agreement, it is aligned with 14 other shipping lines in a so-called “talking agreement,” comprising the world’s leading players.
As reported in LM, Maersk Line had outlined revisions to its trans-Pacific network services as recently as last August, which included changes to services operated under a vessel sharing agreement with MSC and CMA-CGM.
“In response to the challenges facing ocean carriers as a result of the global economic downturn, we must continually look at ways to reduce our cost and increase efficiency without significant impact to our customers,” said Bill Woodhour, North America Sales manager for Maersk Line. “We have made good progress in a number of areas….”
But apparently not good enough.
According to industry analysts, carriers have been taking a beating on rates for several years now, amounting to as much as $3 billion in losses.
Since it was reorganized two yeas ago under the leadership of NOL’s CEO, Ron Widdows, the TSA has convened periodic meetings between carriers and shippers to discuss market conditions.
That strategy, analysts said, was responsible for bringing back MSC and CMA CGM – the world’s second and third largest carriers respectively.
But now with Maersk joining the pack, analysts suggested that the whole cartel may be facing a new challenge: Federal Maritime Commission scrutiny.Anti-trust experts have stated that even in a loose confederation like the TSA, the discussion may resemble something more like collusion than just a corporate coffee klatch.
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