This year it has all been about alliances. New ones were formed, some stripped and restructured. 2017 will see a couple of more take effect. Today, we will focus on the 2M Alliance.
A couple of weeks, we wrote a summary on THE Alliance accompanied also by an infographic. As stated, THE Alliance was put together in an effort to challenge the 2M Alliance led by mighty Maersk with MSC. Let's see how it fares in April 2017 once it goes into effect as just last week the FMC officially approved THE Alliance.
Now, Maersk has flexed its muscles this year with their announcement in early fall to be a "strong container shipping, logistics and ports company" and divide into two divisions: transport and logistics and energy.
The transport and logistics division would make it a full player in the transport and logistics world. Maersk “will be like one company offering container shipping, logistics, and port services through Maersk Line, Damco, and APM Terminals," Soren Skou said at the Danish group’s Capital Markets Day.
The acquisition of Hamburg Süd is inline with their communicated consolidation ambition for the new division, Maersk Transport and Logistics. They have embarked on truly being a global leader with an extremely competitive offering in Latin America and Oceania.
In addition, although HMM wasn't accepted into 2M, they have agreed on sharing slots for the Trans-pacific. "Maersk and MSC will gain access to the Asia-US West Coast services operated independently by HMM. This will provide the 2M partners with additional coverage of the trans-Pacific trade, where they have already gained market share since Hanjin Shipping’s departure from this route in September," reported The JOC.
Extending Maersk's Reach Southbound
If we couple Maersk's foothold with MSC, the 2M Alliance is a strong force. The OCEAN Alliance and THE Alliance will be ready to challenge 2M's position, especially on the Trans-Pacific. Come April 2017, the true battle for the U.S. trades will begin. How will ocean freight rates, capacity and reliability be with these new alliances?
In the meantime, below is some info you should know about the 2M Alliance. This makes great material for over-Christmas-dinner-family chats. Blow your family's mind away with shipping alliance info. They will appreciate it. Enjoy.
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