Container ships move more than 95% of the world’s manufactured products and as the dust settles from recent formation of alliances, we asked if shippers actually benefit from them. The results of our weekly Twitter survey were surprisingly mixed with 38% indicating yes, 38% saying no and 24% did not know if alliances benefited them or not.
Do Shippers Benefit from Alliances? Survey Result
Alliances are certainly not new and vessel carriers have highlighted their benefits in years past such as providing stability for partners through the ability to share space on ships, increase vessel utilization, expand port coverage and stem financial losses.
Meanwhile concerns of price collusions have always hovered over alliances as regulators and shippers alike maintain a watchful eye. But, according to a Journal of Commerce survey from last year, there seems to be little evidence of such activity. The magazine surveyed shippers and found that one third of Trans-Pacific shippers noted contract rates for the 2015-16 season were unchanged from the prior year while 21% indicated rates increased 1% to 3% and the final one-third surveyed noted rates increased 3%.
While price collusion is not a big concern of shippers, several industry articles suggest that poor service reliability, service changes and fewer options are concerns.
What do you think? Continue the conversation on our LinkedIn page here and while you’re visiting, check out how we can help bring clarity to the ocean freight industry.
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