The container shipping alliances are about to undergo a general overhaul. The Wall Street Journal reports AP Moeller-Maersk and Mediterranean Shipping Co. are ending their ship-sharing partnership known as 2M.
The decision, which will come into effect in 2025, comes at a time when global trade demand is weakening and freight rates are in free fall, putting renewed pressure on the shipping sector after nearly three years of booming business.
Maersk and MSC reached their agreement in 2015, and competitors have similar arrangements to save on operating costs. 2M, the Ocean Alliance and THE Alliance now control around 75% of global container shipping capacity, crowding out smaller operators in key markets.
With the world’s two largest shipping companies now dissolving, the shipping companies in the remaining alliances may be looking for new partners. They could also follow the lead of Maersk and MSC executives, who said ending operational collaboration will give them more room to pursue their separate strategies.
