Box Carriers Pressured by Lack of Market Consolidation
MSC ChicagoLack of consolidation in the box carrying segment will resume exerting pressure on shippers, according to Drewry Shipping Consultants.
Despite the fallout of the P3 network planned by Maersk, MSC and CMA CGM, competing shippers, especially those in China may not be in a position to keep up with the aforementioned shipping giants.
Drewry pointed out that even without the P3, Maersk and CMA CGM were already at the industry’s forefront when it comes to profit, projecting that this trend will continue as they seek new ways to cut their costs and increase efficiency through existing bi-lateral and tri-lateral vessel-sharing agreements.
“They might even be allowed to form a tri-lateral consortium in the Transpacific, as their current 20% market share of effective eastbound vessel capacity to the West Coast alone is well below the G6’s 34%,” Drewry said.
Drewry, June 26, 2014; Image: Shipspotting
