New ocean carrier alliance may alter Asia-North Europe balance

Shippers using several other key markets, including Asia-Europe, Asia-Southern Africa and the South American markets, may also feel the impact

By ·

Traditional rivals, MSC and CMA CGM, are changing course now to work together as operating partners in several key trade lanes.

According the Paris-based consultancy, Alphaliner, The impact of the new partnership will be felt most intensely on the Asia-North Europe trade, where the two carriers are to co-operate on four loops. These jointly-run services will be based on existing offerings, namely on MSC’s “Silk” and “Lion” services and on CMA CGM’s “FAL 1” and “FAL 3.”

But shippers using several other key markets, including Asia-Europe, Asia-Southern Africa and the South American markets, may also feel the impact

“These four loops are to be revised, in particular to accommodate the respective hubs of each of the two carriers,” said Alphaliner’s commercial director, Stephen Fletcher. “The deal is expected to help fill MSC’s armada of giant containerships.”

The shipping line is expected to operate 57 ships of 12,500-16,000 twenty-foot equivalent units (TEUs) by the end of 2015 (of which 24 remain to be delivered), according to Alphaliner records, while CMA CGM is expected to have only ten ships in this size range by that date (of which three remain to be built), in the absence of any new orders or fresh charters.

“Without speculating on future deals, MSC could potentially hire some of its big units to CMA CGM as part of the cooperation,” said Alphaliner analysts. “This would help the Swiss-Italian carrier to keep its fleet employed while allowing CMA CGM to achieve its growth plans which have been derailed by the financial crisis.”

Analysts added that the new MSC-CMA CGM partnership should become the leader in the Far East-North Europe trade, where the combined fleet of the two carriers currently gives them a 22 percent capacity share.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Outsourced Transportation Management
All the benefits of owning a fleet without the headache of managing it.
Download Today!
From the August 2017 Logistics Management Magazine Issue
Which carriers, third-party logistics providers, and North American ports have crossed the service excellence finish line ahead of their competitors? Our readers have cast their votes, and now it’s time to introduce this year’s winners of the coveted Quest for Quality Awards.
BMW Takes the Inland Road to Efficiency
Global Logistics: No Shortcuts to Security
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...