New Global Shipping Alliance a Reality Soon

 

William Doyle, member of U.S. shipping regulator Federal Maritime Commission (FMC) said that representatives of the companies will meet today (Wednesday) to discuss their proposal.

 

Doyle declined to name the carriers meeting with members of the regulatory body or say how many operators were involved in the discussions. 

 

The Ocean Alliance intends to put its agreement into motion in April 2017, and Doyle said he expects the carriers to make a formal application for review within the next two months. 

 

Several of the world’s major shipping lines, including Germany’s Hapag-Lloyd AG and South Korea’s Hanjin Shipping Co. Ltd., risk being left on the sidelines as a deep downturn in the shipping business crashed against the industry and helps break apart long-standing agreements among carriers.

 

Recently merged China Shipping Cosco Group and carriers in Asia and Europe are preparing a lineup of five operators to share capacity and said they would form the Ocean Alliance. The move unraveled other pacts, triggering a new round of deal-making to share vessel space.

 

Maersk Line, the A.P. Moller-Maersk shipping unit that is the world’s biggest container line by capacity, is teamed up with No. 2 carrier Mediterranean Shipping Co., in the 2M alliance.