With the merger between the Cosco group and China Shipping Container Lines (CSCL) getting close to completion, this could impact on the structure of the global alliances.
It has moved into the advanced stages, and the two companies are now focusing on merging their container shipping units, with terminal-management operations also being involved to a lesser degree, at a total valuation of between US$15-20 billion, according to the Wall Street Journal.
And with Cosco operating 175 containerships and CSCL 156, the combined unit would rank as the world’s fourth largest container shipping group.
And, according to Port Technology, it could see both carriers pulling out of their current alliances or see both join one. This, added PT, would reshape the landscape of liner alliances and cause fresh challenges for ports and terminals.
Cosco is currently a member of the CKYHE alliance (with K Line,Yangming, Hanjin and Evergreen) and CSCL of O3 (with CMA CGM and United Arab Shipping Company.
