The international image of the Liner shipping has changed dramatically the last five years the sector ‘hit by the waves’ of the financial crisis. New options adopted by major Liner companies, with strategic alliances to forefront of these, because ensuring the stability and mainly the needed liquidity through economies of scale and risk-sharing, which are the main challenge of survival in today’s volatile market.
Specifically, the last two years were created two new major Strategic Alliances in Liner sector.
The first new StrategicAlliance called G6 Alliance appeared in April 2012 jointed with seven Liner operators to Asia- Europe route and two Liner operators to the Mediterranean. It includes a direct liner service to Far East-Baltic route with intermediate points in in Gdansk and Gothenburg, and transfer station in Singapore.
The G6 is a new one alliance connecting two oldest Strategic Alliances, the Grand Alliance and New World Alliance.
The members/liner companies of the New alliance are: NYK, Hapag – Lloyd and OOCL (from TGA) and APL, HMM and MOL covering more than 40 ports in Asia, Europe and the Mediterranean, including Bohai and Baltic loops.
It is estimated that the G6 Alliance is a milestone agreement that improves liner services to Asia- Europe market and aim to meet the requirements of this market in order to gain a competitive advantage.
The second new Strategic Alliance is called P3 Network, was established on June 18, 2013, from Maersk Line, Mediterranean Shipping Company SA and CMA CGM, which agreed firstly to build a long term business alliance that will operate to East – West route.
The P3 Network will operate in three trade routes: Asia – Europe, Trans – Pacific and Trans – Atlantic, providing customers most stable, flexible and frequent services and reducing the disruption caused by routes cancellations.
The main aim of the alliance is to improve and optimize the functions and liner services offered in the three above routes, while sales operation, marketing and customer service will be fully independent.
Undoubtedly the G6 Alliance and P3 Network are two gigantic and importance Strategic alliances each one separately has a leading position in the market. Specifically, the G6 Alliance has ambitions to expand to transatlantic and Asia-USA routes, while the P3 Network to trade lines of West.
Analyzing the dispute between the G6 Alliance and P3 Network about their dominance in the East-West lines to the following figure… click here
Source: Longshore & Shipping News