MEGA shipping alliances are
not breaching antitrust rules, according to Aitken Spence Maritime and
Logistics chairman Parakrama Dissanayake, who sought to allay shippers' feats
that such blocs pose a threat, reports Sri Lanka's Sunday Observer.
Dr Dissanayake pointed out
that four mega shipping alliances MSC and CGM, Maersk Line, Grand Alliance and New
World Alliance and CKYHA - Evergreen from Asia to Europe control a shipboard
capacity of 13.4 million TEU and a market share of 85.8 per cent. From January
to April this year the four shipping alliances increased freight rates 60 per
cent compared to last year.
Notwithstanding rate
increases, the global fleet in the 8,000-TEU category will grow by 25 per cent
this year posing a threat to freight rates and profitability of shipping lines.
In this backdrop, Maersk
Line expects losses again this year as announced by its chairman of its parent
group recently at its annual general meeting.
Dr Dissanayake said that
under the current European Union regulations, each consortium within major east
and west trade lanes can have a maximum market share of 30 per cent. Maersk
Line controls 19.3 per cent as against MSC/CGM-CMA's 29.9 per cent on the
Asia-Europe route. Grand Alliance and New World Alliance have 17.3 per cent
while CKYH and Evergreen have 18.4 per cent.
"Therefore, it is
evident that the mega shipping alliance recorded so far does not appear to
break any antitrust rules. However, in the short term, shippers would not be
able to do much as the regulations come up for renewal again only in
2013," Dr Dissanayake said.
He said mega consortia will
provide shippers with better service frequencies and port coverage. Also
further membership in lines will be better placed to compete against
"daily Maersk service from Asia to North Europe."
Dr Dissanayake said that a
question is being posed: "Will all this lead to fewer transshipments since
ocean carriers will gain economies of scale to call at secondary ports?"
Source : HKSG, 24.04.12.
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