Disclaimer

The articles excerpted on this site report on the state of the industry as seen by mainstream media, and do not necessarily reflect the opinion of the officers of the ILWU Coast Longshore Division.

Experts warn of carrier alliances causing congestion, disruption at U.S. ports

Excerpts from an article titled ”’Shotgun start’ of new alliances to test port productivity” in the Journal of Commerce:

Concern is growing that major US gateways won’t be able to handle the overnight changes that will occur at marine terminals when new ocean carrier alliances take effect on April 1. A new bout of congestion […]

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Alliances, megaships, capacity to strain ports in 2017

Excerpts from an article titled ‘New alliances, bigger ships put US ports on high alert’ in the Journal of Commerce:

US ports are facing what could be a historically challenging 2017 as changes in the rapidly evolving steamship industry — among them new alliances, consolidation, and escalating ship capacity — heighten the already vigorous competition […]

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Hyundai Merchant no longer considered for 2M Alliance, Maersk says

From the Wall Street Journal:

Maersk Line, the senior member of the world’s largest container-shipping alliance, has said it is no longer considering Hyundai Merchant Marine for membership in the group, dealing a major blow to the troubled Korean shipping company.

The so-called 2M Alliance—made up of Maersk and Mediterranean Shipping Co.—moves a third of […]

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Panama vs Suez: Which do alliances favor?

From Port Technology:

New alliance service networks for Asia-East Coast North America favor the Panama Canal routeing ahead of the Suez Canal, according to Drewry. … The expansion of the Panama Canal at the end of June has been a game changer. Several Asia-ECNA via Panama loops have been upgraded to deploy ships of 8,000 […]

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Ocean Alliance gets formal FMC approval

The Federal Maritime Commission (FMC) said last week it has concluded its review of the proposed Ocean Alliance.

Set to take effect immediately and begin operations next April, the carrier members of the Ocean Alliance include: COSCO Shipping, CMA CGM, Evergreen Marine, and Orient Overseas Container Line Limited (OOCL).

With this agreement now intact, FMC […]

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Maersk may target Hanjin, Hyundai in new acquisition plan

From Bloomberg:

A.P. Moeller-Maersk A/S’s container line, which this month ditched a strategy of building new vessels and will instead try to grow through acquisitions, is targeting South Korea’s two biggest shipping firms, according to Jefferies International Ltd.

Hanjin Shipping Co. last month filed for bankruptcy protection and Hyundai Merchant Marine Co. is in the […]

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Federal Maritime Commission voices concern about alliances

From Splash 247:

William Doyle, FMC Commissioner, said, ”We’ve been down this road before with language proposed but not implemented by the P3 Alliance and the language in the existing 2M Alliance.”

The creation of the Ocean Alliance – a new container grouping involving China Lines, OOCL, Evergreen, APL and CMA CGM, has hit a […]

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Hyundai Merchant Marine joins Maersk and MSC in 2M Alliance

Hyundai Merchant Marine (HMM) has signed on to join the 2M alliance from April next year.

HMM will join Maersk and MSC in the vessel sharing partnership, marking the latest sign that the Korean line is finally coming out of its financial woes.

HMM added that it has now completed all conditions set out in […]

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Bloomberg View: Ships Have Gotten Too Big

”In recent years, mega-vessels have caused traffic jams in the water and on-shore as overwhelmed ports struggle to offload thousands of containers.”

What’s a major cause of congestion at our ports? An important from piece Bloomberg View:

In December, the quarter-mile-long Benjamin Franklin became the largest cargo ship ever to dock at a U.S. […]

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Shipping alliances demand aggressive oversight – FMC chairman

From Marine Link:

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 […]

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Hapag-Lloyd, five Asian liners form new shipping alliance

Hapag-Lloyd AG, Germany’s top container shipping line, and five Asian carriers will form a new vessel-sharing alliance to take on bigger rivals amid a glut in capacity that’s depressed freight rates.

The partners will include Japan’s Kawasaki Kisen Kaisha Ltd., Mitsui OSK Lines Ltd., Nippon Yusen KK, South Korea’s Hanjin Shipping Co. and Taiwan’s Yang […]

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Hyundai, Hanjin mull alliance options

From the Journal of Commerce:

Hanjin Shipping and Hyundai Merchant Marine have confirmed they are in discussions with other container lines on forming alliances when their current alliance agreements expire in 2017, assuming they survive their current liquidity crises.

Existing alliance structures were due for a shake up after the announcement of the Ocean Alliance […]

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Big shake up for container alliances as CMA CGM announces new deal with COSCO, Evergreen, and OOCL

From Ship and Bunker:

CMA CGM S.A. (CMA CGM) Wednesday announced that it has signed a Memorandum of Understanding (MoU) with COSCO Container Lines (COSCO), Evergreen Line (Evergreen) and Orient Overseas Container Line (OOCL) to form a new shipping alliance, known as “Ocean Alliance.”

Ocean Alliance would control 23.5 percent of the world’s container capacity, […]

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Port of Los Angeles traffic up to highest August level in 9 years

The Port of Los Angeles reversed two months of declining traffic to post a 3.8 percent increase in cargo for August from a year ago.

“The numbers are strong indicators that our terminal operators, longshore labor and supply chain partners are adjusting to the new industry dynamics of carrier alliances, deploying larger ships and […]

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IANA says alliances, chassis, megaships may trigger new logjams

Excerpts from a Wall Street Journal article titled ‘Intermodal Market Has Fresh Concerns Over Infrastructure, Equipment’:

West Coast port congestion because of a long-running labor dispute may be in the rearview mirror, but North American industrial supply chains aren’t out of the woods yet.

Alliances among global ship operators, chassis shortages, a lack of sufficient […]

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