The restructuring of the ocean carrier alliance system, triggered by merger and acquisition activities by shipping companies, is a logical business development, but if not carefully monitored and regulated, could also represent a move toward reduced services for shippers, said Mario Cordero, Chairman of the Federal Maritime Commission (FMC).
“At the end of the day, alliances are supposed to benefit the shipper by providing increased choices, increased competition and increased efficiencies. With the number of ocean carriers decreasing through merger and acquisition activity, and alliances restructuring themselves into larger entities, it is not unreasonable to ask, ‘Is the shipper really going to benefit?’” Cordero said. … “The very last messages I want to hear are from shippers telling me that their choices have been reduced and service diminished as a result of these new alliance structures, or that port congestion is increasing because cargo is now transiting fewer gateways. The Federal Maritime Commission will work diligently to protect and enhance the international, intermodal supply chain.”
