News / Shippers give tentative thumbs-up to 2M, but market share still a concern for China

11/07/2014

Shippers have broadly welcomed the proposed vessel-sharing agreement alliance between Maersk Line and MSC.

The European Shippers’ Council (ESC) has called the plan for a 2M Alliance “less worrying for shippers than the planned P3”.

And former chair of the Asian Shippers’ Council, John Lu, said it would be “good news, because it will provide better services, with more sailings and services to more ports”.

However, Cai Jiangxiang, vice-chairman of the China Shippers’ Association, which had lobbied its government to veto the P3 ...

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Andy Lane
July 12, 2014 at 3:01 am
Indeed, one would have to assume that 2M already an in principle approval from China before making announcements.

Not sure why Maersk claim a market share of less than 30%, 2M presently stands (statistically) at 35.8%. It is also rather irrelevant, since EU already approved P3, so there can be no logical reason not to approve 2M.

Had the EU consortia block exemption not been extended, it would have been interesting to see what would have happened to prices and Customer choice. If shippers wish to sustainably benefit from “low” prices, and have some additional service offerings, then the trade-off is vendors working in alliances. Only through network cost reductions (with no additional loss of service) can present prices/service be sustained.

It is also time however for lines to listen more objectively to Customer requirements, and likewise for Customers to express realistic requirements more consistently. Collaboration appears very absent presently, and maybe the first movers to enhance this will be the long term winners?

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Andy Lane
July 12, 2014 at 3:49 am
Just also to dwell on the “blanked sailings” issue. With seasonal and/or week-to-week demand fluctuations, then blanked sailings are somewhat inevitable.

I would however fully agree with K&N that a few days or even weeks notice was unacceptable! This is a result of many liners not pro-actively planning and optimising their networks, producing then a lose-lose outcome. True network optimisation is extremely complex, it is however at the root of a liners costs and profits, and when done well, can also enhance the Customer experience. Despite the complexity, it needs to have a top priority and attention, greatly improved results will be the outcome for all who embrace this.

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