China Cosco Shipping Corp (COSCOCS) will tear up the global container alliance structure, a senior government official has told state media.
COSCOCS has repeatedly been linked to joining a new alliance with CMA CGM, OOCL and Evergreen, a move that would have severe repercussions for the Ocean 3, CKYHE and G6 alliances as well as turn heads at 2M, the Maersk-MSC alliance.
None of the four companies mooted in the new alliance have confirmed the speculation when contacted by Splash over the past month.
However, Yin Zhen, deputy director of transport planning at the Institute of Comprehensive Transportation at Beijing’s powerful National Development and Reform Commission (NDRC), has told state-run China Daily newspaper: “China Cosco Shipping wishes to form a stronger alliance that can challenge 2M’s ascendancy in the East-West trading route, as well as cut connections with certain weak partners within the current alliances to prevent further financial losses”.
A COSCOCS spokesperson added: “Forming a bigger union can effectively offset lower volume growth and overcapacity. China Cosco Shipping will choose future partners carefully to establish a powerful shipping alliance amid current global trade and industrial setting.”
Last week, Rodolphe Saadé, vice chairman of CMA CGM, confirmed the giant French line is holding discussions about creating a new container alliance in an interview with the Wall Street Journal.
Source: Splash 24/7
Source: Splash 24/7