Seaports Magazine - Fall 2014 - (Page 20)

SHIPPING LINES PARTNER TO STAy AFLOAT APL G6 - the Grand Alliance Hapag-Lloyd Hyundai Merchant Marine Mitsui O.S.K. Lines NYK OOCL Cosco CKYHE Alliance K Line Yang Ming Hanjin Shipipng Evergreen *Proposed '2M' *Proposed Ocean Three Maersk MSC CMA CGM China Shipping Container Lines United Arab Shipping Co. *Chinese officials rejected the proposal for CMA CGM to join Maersk and MSC in a proposed P3 alliance. Maersk and MSC have moved forward with a less formal vessel sharing alliance of their own, and CMA recently announced the formation of the Ocean Three alliance with China Shipping Container Lines and United Arab Shipping Co. Both the "2M" Alliance and the Ocean Three Alliance are pending approval from the U.S. Federal Maritime Commission. THE BOTTOM LINE Vessel sharing alliances create stability in the liner industry by maximizing efficiency and minimizing costs. Ports stand to benefit from this streamlining, but only if they have sufficient infrastructure and can take advantage of the latest operations technology. 20 AAPA SEAPORTS MAGAZINE By Meredith Martino G6. 2M. The shorthand names for some of today's shipping line industry alliances might sound like Bingo calls or Battleship moves, but vessel sharing agreements are no game for the port industry - though they may set some ports up for major wins when it comes to vessel calls and business agreements. Ports throughout the Western hemisphere keep a close eye on the liner industry. As companies blur hard-edged distinctions that once separated them from competitors, their business decisions have ripple effects for ports. Sharing space on vessels is not a new concept. For about 25 years, some shipping lines have engaged in partnerships that have allowed competitors' cargo to "ride the lines" of another company. As ships have gotten larger, shipping companies have come to grips with the fact they don't often have enough cargo to fill their own vessels. By partnering with another company, they can maximize the efficiency of the larger vessels and minimize costs. "How do you fill a 12,000-13,000 TEU vessel going it alone?" asked U.S. Federal Maritime Commission Chairman Mario Cordero, whose agency's mission is to foster a fair, efficient and reliable international ocean transportation system and to protect the public from unfair and deceptive practices. Similar to the alliances that have been forged in the commercial airline industry, shipping line alliances are seeking to cut costs for ocean liners. And they have been successful.

Table of Contents for the Digital Edition of Seaports Magazine - Fall 2014

AAPA Seaports Magazine
From the President’s Desk
The Big Ship Race – Is Bigger Better?
Shipping Lines Partner to Stay Afloat
Cruise Lines Set Sail for Growth
Bulk Cargo Ports Valuable to the Community
Crafting Funding Solutions for Port Projects
Sister Agreements Spread Cultural Wealth
Strong Financial Ratings Open the Door of Opportunity
Customer Service a Key to Strong Bottom Line Results
Plug in to the Fuel of the Future: Electricity
Houston Thinks Outside the Box With Non-Traditional Lines of Business
Ohio Port Authorities Know How to Rock Economic Development
XXIII Congress of Latin American Ports
Index of Advertisers

Seaports Magazine - Fall 2014