This is what is reported in the Journal of Commerce
MSC and CMA CGM, the world’s second and third largest ocean carriers, are joining forces on key trade routes in a game-changing move that is likely to trigger a new round of consolidation in the container shipping industry.
A spokesman for French carrier CMA CGM said the carriers will shortly issue a statement about the alliance, which is expected to involve the Asia-Europe route, the world’s biggest liner trade.
CMA CGM’s partnership with Geneva-based MSC also will cover trades to Latin America and between Asia and South Africa.
The alliance between the two family-owned companies comes at a time of deepening losses in the industry triggered by excess capacity and slowing world trade that has prompted moves by smaller carriers to pursue consolidation.
In the past week, Chile’s CSAV and Zim, the Israeli carrier, have been reported to be seeking partners, while Malaysia’s MISC announced it will exit container shipping because of mounting losses.
The CMA CGM/MSC partnership is also expected to exert fresh pressure on Japan’s top three shipping lines, MOL, NYK and “K” Line, to re-examine plans to spin off their ocean container activities into a single unit.