The alliance between CMA CGM, United Arab Shipping Co (UASC) and China Shipping Container Lines (CSCL) will have an extensive East-West network and share of markets, superior access to big-ship cost advantages and no apparent incompatibility between the schedule reliability objectives of its members, the analyst says.
Yet its success in competing against other alliances — including the 10-year vessel-sharing agreement (VSA) planned by Maersk Line and Mediterranean Shipping Co (MSC) — depends on how the “disparate companies in terms of ownership structure, nationality and culture can operate together”, as well as how quickly they are able to react to market developments, Drewry says.
The
