We consider the causes and consequences of the 2M Alliance split
Mediterranean Shipping Company (MSC) and AP Moller-Maersk (Maersk) are famously untying their 2M alliance amid plentiful discussion as to the reasons.
Some think that Maersk’s dash for methanol and distaste for LNG is the main reason, but MSC’s latest newbuilding order for ten 11.5 k TEU ships with LNG and methanol capability undermines this argument somewhat.
Others point to increasing attention from competition authorities in the US, EU and China. However, that attention has defocused somewhat as freight rates have fallen.
Analysis by Shipping Strategy Ltd of the concentration ratio in liner shipping suggests that the top three liner companies (the 2M members plus CMA-CGM of France) control 46.6% of the global liner fleet and orderbook as of January 2023, compared to 35.5% in 2017. That might concern any governments who follow the data.
Governments use a metric to examine the competitiveness and openness of a market called the Herfindal-Hirschman Index. We applied it to the three alliances and here are the results… (click to keep reading)
5 Types of Risk in Shipping
Political, Economic, Technological, Societal and Operational changes seem to be accelerating. How do they affect our industry and what can we do to maintain corporate sustainability? If you are in Norway on 28, or April 18, sign up for Mark Williams’ seminar series 5 Types of Risk in Shipping, hosted by the Shipping and Offshore Network.Click here for details.
Seafarers’ Happiness Index
Mark Williams is joined by Steven Jones, Founder of the Seafarers’ Happiness Index, in the latest Ship.Energy podcast. Hear Steven and Mark discuss how the men and women at the sharp end of the industry are dealing with the practical challenges thrown up by decarbonisation, as well as the challenge of training them all on the new technolgy. Listen here and register free at Ship.Energy to learn more.
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