• Home
  • About
    • Members
    • Associate Members
  • Thematic Areas
    • Containers
    • Cruise
    • European Port Policy
    • Ports & COVID-19
  • PortStudies
  • Presentations
  • Noticeboard
  • Viewpoints
  • PortLibrary
  • PortReport
PortEconomics
  • November 29th, 2023
PortEconomics
  • Home
  • About
    • Members
    • Associate Members
  • Thematic Areas
    • Containers
    • Cruise
    • European Port Policy
    • Ports & COVID-19
  • PortStudies
    The implications of Chinese investments on Mediterranean trade and maritime hubs

    The implications of Chinese investments on Mediterranean trade and maritime hubs

    Port economics, management and policy studies (2009–2020): a bibliometric analysis

    Port economics, management and policy studies (2009–2020): a bibliometric analysis

    A menu of possible actions for decarbonization today and tomorrow

    A menu of possible actions for decarbonization today and tomorrow

    Mobility in European container port rankings

    Mobility in European container port rankings

    Container terminal automation: a global analysis on decision-making drivers, benefits realized, and stakeholder support

    Container terminal automation: a global analysis on decision-making drivers, benefits realized, and stakeholder support

  • Presentations
    Piraeus port privatisation revisited: geopolitical leverage in maritime transport and global supply chains

    Piraeus port privatisation revisited: geopolitical leverage in maritime transport and global supply chains

    Ten PortEconomics members in the top-2% of researchers in logistics and transportation

    Ten PortEconomics members in the top-2% of researchers in logistics and transportation

    Top-15 European container ports, H1 2023

    Top-15 European container ports, H1 2023

    ESG in ports: transparency and integrity

    ESG in ports: transparency and integrity

    OECD Peer Learning Group meeting of the Production Transformation Policy Review (PTPR-PLG) of Republic of Togo

    OECD Peer Learning Group meeting of the Production Transformation Policy Review (PTPR-PLG) of Republic of Togo

  • Noticeboard
    Port renewable energy hub: contribute to the research

    Port renewable energy hub: contribute to the research

    Circular Economy to be fully integrated in ‘Port Economics, Management and Policy’, a global leading reference handbook

    Circular Economy to be fully integrated in ‘Port Economics, Management and Policy’, a global leading reference handbook

    Call for Abstracts: International Academic Conference on Shipping, Sustainability & Solutions

    Call for Abstracts: International Academic Conference on Shipping, Sustainability & Solutions

    Transitions: readiness and challenges in the shipping industry

    Transitions: readiness and challenges in the shipping industry

    PortEconomics members to analyze port strategy and performance in the new global scenario

    PortEconomics members to analyze port strategy and performance in the new global scenario

  • Viewpoints
    The leading global container terminal operators in the top 15 EU container ports

    The leading global container terminal operators in the top 15 EU container ports

    China’s investments in seaports along the maritime silk road

    China’s investments in seaports along the maritime silk road

    As expected, large containerships are arriving in Latin America

    As expected, large containerships are arriving in Latin America

    The Analyst: Amsterdam’s bold move on cruise may be a missed opportunity to promote sustainable cruise tourism

    The Analyst: Amsterdam’s bold move on cruise may be a missed opportunity to promote sustainable cruise tourism

    OECD Peer Learning Group meeting of the Production Transformation Policy Review (PTPR-PLG) of Republic of Togo

    OECD Peer Learning Group meeting of the Production Transformation Policy Review (PTPR-PLG) of Republic of Togo

  • PortLibrary
  • PortReport
The future of alliances: impediments for liners involvedContainers

The future of alliances: impediments for liners involved

January 26th, 2023 Containers, Featured, Thematic Area, Viewpoints

READ ALSO

Port economics, management and policy studies (2009–2020): a bibliometric analysis
Port economics, management and policy studies (2009–2020): a bibliometric analysis
A menu of possible actions for decarbonization today and tomorrow
A menu of possible actions for decarbonization today and tomorrow
The leading global container terminal operators in the top 15 EU container ports
The leading global container terminal operators in the top 15 EU container ports
The implications of Chinese investments on Mediterranean trade and maritime hubs
The implications of Chinese investments on Mediterranean trade and maritime hubs

“MSC Mediterranean Shipping Company and A.P. Moller – Maersk announced they have mutually agreed to discontinue the 2M alliance, set to end in January 2025. This implies that the 10-year agreement which was signed in 2015 will not be extended.

In a presentation on the future of #alliances in container shipping delivered on May 10, 2022, during the FIATA International Federation of Freight Forwarders Associations “Market Structure and Maritime Competition” Webinar Series, PortEconomics co-director Theo Notteboom already underlined that there is a very strong focus on the role of regulation – the EU Block Exemption Regulation or BER in particular – when assessing the future of alliances.

Theo Notteboom details his viewpoint following the announcement of the discontinuation of 2M following the conclusion of the ten years agreement in 2025:

“We often overlook the role played by internal drivers and impediments of alliance membership to the carriers:

(A) While the three alliances currently in existence (2M, THE Alliance, and Ocean Alliance) play a key role in capacity management on the main East-West routes, carriers show an increased level of pragmatism when setting up vessel sharing aggreements with other carriers on these and other trade routes;

(B) Alliances imply a certain loss of strategic and operational independence when designing joint liner services or selecting ports of call, resulting in sometimes hefty negotiations between alliance members (see our paper https://lnkd.in/eQC7KEan on the role of terminal ownership of alliance members on port choice);

(C) Alliance membership becomes more difficult to reconcile with far-reaching vertical integration strategies of carriers. Both Maersk and MSC have taken distinctive steps in this direction in the past few years (see our recent paper https://lnkd.in/eftD2GHJ for a more detailed analysis on logistics integration by Maersk and MSC);

(D) Alliances typically play a strong role in company survival during depressed market conditions. However, the added value of alliances might be less obvious during ‘good times’ when carriers enjoy healthy financial positions; 

(E) Alliance membership can overcome a lack of economies of scale and network effects of individual carriers. The more extensive the global service network of a member becomes, the less benefits alliances bring in this respect.

Theo Notteboom

You might read more on the impediments for the carriers involved in alliances by visiting the www.porteconomicsmanagement.org: Main Impediments for Carriers to be Involved in Alliances

Feel free to share

Facebook Twitter Google+ LinkedIn Pinterest
Next article Seaports as green hydrogen hubs: advances, opportunities and challenges in Europe
Previous article Logistics integration strategies in container shipping: a multiple case-study on Maersk Line, MSC and CMA CGM

Related Posts

The implications of Chinese investments on Mediterranean trade and maritime hubs Featured

The implications of Chinese investments on Mediterranean trade and maritime hubs

Port economics, management and policy studies (2009–2020): a bibliometric analysis Featured

Port economics, management and policy studies (2009–2020): a bibliometric analysis

A menu of possible actions for decarbonization today and tomorrow Featured

A menu of possible actions for decarbonization today and tomorrow

Leave a Reply Cancel reply

You must be logged in to post a comment.

Weekly Timeline
Nov 20th 2:49 PM
Featured

The implications of Chinese investments on Mediterranean trade and maritime hubs

Nov 20th 2:39 PM
Noticeboard

Port renewable energy hub: contribute to the research

Nov 13th 1:32 PM
Featured

Port economics, management and policy studies (2009–2020): a bibliometric analysis

Nov 1st 3:03 PM
Featured

A menu of possible actions for decarbonization today and tomorrow

Oct 24th 1:03 PM
Thematic Area

Mobility in European container port rankings

Tweets by @PortEconomics
  • Containers
  • Cruise
  • EPP
  • Ports & COVID-19
  • Back to top
About PortEconomics

PortEconomics is a web-based initiative aiming to advance knowledge exchange on seaport studies. Established by maritime economists affiliated to academic institutions in Belgium, Greece and the Netherlands. It provides freely accessible research, education, information, and network-building material on critical issues of port economics, management and policies.

Additional Information
  • About
  • Login
  • Register
  • Edit Profile
  • Privacy policy
  • Contact us
  • PortProfessionals
  • PortReport Series
© PortEconomics 2020. All rights reserved.
Produced by PortEconomics