ALLIANCE

Nguyễn Trần Bảo Châu

Vũ Hồng Đào
Nguyễn Hồng Hạnh
Nguyễn Ngọc Hiền Lecturer: Ths. Tô Thị Bích Ngọc
Trần Xuân Hương
Lê Ngọc Thùy Linh
16 Oct, 2023
 Content
1. Key container carriers in the world

2. The development history of the ocean shipping alliance

3. Advantages – disadvantages of container shipping alliance

4. 2M alliance broke up

5. Green shipping
1. KEY CONTAINER CARRIERS IN THE WORLD
1. KEY CONTAINER CARRIERS IN THE WORLD
MSC (Mediterranean Shipping Company)
1970: MSC was founded in Naples.

1989: MSC bought Lauro Lines

1995: StarLauro Cruises was renamed MSC Cruises.

2014: Ranked number 6 in Lloyd's List and Top 100

2015: In June 2015 cooperate with Maersk.

2020: MSC bought 128 second hand container vessels.

2021: MSC offers to buy Bolloré's logistics branch in Africa

2022: MSC Cruises S.A. All rights reserved.

 1. KEY CONTAINER CARRIERS IN THE WORLD

 In 2022, MSC overtook Maersk as

the world’s biggest container line.

 As of today, MSC deploys a fleet

of 753 container ships with a
total capacity of 5,369,957 TEUS.

 MSC holds a global market share

of 19.4%.

 Since 2020, the Swiss company

rapidly acquired 128 second-
hand container vessels.
 1. KEY CONTAINER CARRIERS IN THE WORLD
A.P. Moller – Maersk

Maersk is a Danish shipping and

logistics company founded in
1904 by Arnold Peter Moller and
Peter Mærsk Moller.

Maersk's business activities

include shipping, port operation,
supply chain management, and
warehousing.
 1. KEY CONTAINER CARRIERS IN THE WORLD
A.P. Moller – Maersk
1904 – 1912: Maersk was founded

1913 – 1940: Maersk becames the leading shipping company in Denmark

1945 – 1975: Maersk expanded to Southeast Asia and beyond

1975 – 1986: Containerisation revolutionses

1986 – 2016: Maersk expanded from 40 countries to over 100 in 10 years

2016 – present: Integration

 1. KEY CONTAINER CARRIERS IN THE WORLD
A.P. Moller – Maersk

Maersk’s 25 - year reign as the

unchallenged leader in cargo shipping
comes to an end with the restructuring.

As of February 24, 2021, Maersk Line

is operating a fleet of 710 ships, with a
total tonnage of 4,119,637 TEU,
accounting for 16.9% of the total
tonnage of the world's container fleet
2. THE DEVELOPMENT HISTORY OF THE OCEAN
SHIPPING ALLIANCE
What are shipping alliances ?

Shipping alliance, as an ocean alliance, is a group of ocean

carriers that create a cooperative agreement together.

This agreement covers a number of trade routes through

cooperation among its members on a global scale.
 How was the first shipping alliance established ?

Since the 1990s, the contradiction between supply and

demand of the liner shipping industry has become
increasingly acute, and the shipping market has
entered an unprecedented difficult period.

The practice shows that a single shipping company is

too weak to run the strategy of "low transportation
cost, high service quality".
 How was the first shipping alliance established ?

Therefore, the world's major

liner companies began a
large-scale joint venture
strategy. The earliest
shipping alliance was
established in 1870's by
seven liner companies in
the form of liner association
and operated on the
London- Calcutta route
 How was the first shipping alliance established ?

Due to the maturity of

container transportation
technology, the trend of
economic globalization and
integration, and the change
of global maritime transport
rules, the liner Association
began to decline, and
gradually withdrew from
the historical stage.
Four generations of global alliances in container shipping

The first generation of alliances

emerged in 1996.

They were ambitious in scope, as

they were made up of an extremely
large share of the vessels held by
the individual carriers.

But these were short-lived in

practice, with the exception of the
Grand Alliance.
Four generations of global alliances in container shipping

The second generation

of alliances proved
more stable.

The main model of

these alliances was the
combination of one
dominant carrier with
several smaller carriers
Four generations of global alliances in container shipping

A crucial change to the

alliances model occurred
around 2012 when also
the largest carriers started
to move into alliances.

This was a reaction to the

creation of the G6 Alliance
in 2012, bringing together
carriers from the New
World Alliance and the
Grand Alliance.
 2. THE DEVELOPMENT HISTORY OF THE OCEAN
SHIPPING ALLIANCE
China refused approval of the container-shipping alliance between
MAERSK, MSC, CMA CGM for the following reasons:

1. The transaction significantly

enhances the market power of the
Counterparties.

2. The transaction will further push

up the entry barriers of the market.

3. Other impacts of the transaction.

In Conclusion, the result of this was a constellation of alliances that
could be considered hybrid, consisting of:

- An alliance with one dominant and

many smaller carriers (G6).

- An alliance with various dominant

carriers (CKHYE).

- An alliance with the two largest global

carriers (2M).

- An alliance with one dominant and two

smaller carriers (O3).
2. THE DEVELOPMENT HISTORY OF THE OCEAN
SHIPPING ALLIANCE
Four generations of global alliance in container shipping
Gen Alliances Period Characteristics
Global, Grand, Ambitious focus,
First 1996-1998
Maersk/Sealand instability.

New World, Grand, Stability, used by mid-

Second 1998-2012
CKHY sized and smaller carriers.

Transition: the largest

carriers also become part
Third G6, CKHYE, 2M, O3 2012-2017
of alliances. Instable
alliance constellation.

No alliance has one

dominant carrier. The
Fourth 2M, Ocean, THE 2017-? carriers in alliances are the
eight biggest carriers
globally.
 3. ADVANTAGES – DISADVANTAGES OF
CONTAINER SHIPPING ALLIANCE

Advantages Disadvantages

Larger shipping capacity. Limited effect on saving costs

Less capital costs. Poor stability.

External or social benefits of

Limited independence.
a shipping alliance.

Internal or company benefits

of a shipping alliance.
 4. 2M ALLIANCE BROKE UP

Why did the Maersk and MSC 2M

alliance break up?

Will Maersk join another alliance

or create a new one?
 4. 2M ALLIANCE BROKE UP
To understand the context of this alliance:
The 2008–2009 financial crisis caused a severe collapse in the
financial health of liner shipping companies.
2015 was a difficult year for the industry. Shipping lines were at
risk of bankruptcy.
At that time, everybody wanted to have large vessels, and the
only way to fill them was to cooperate.

→ Maersk and MSC agreed to cooperate for 10 years, until 2025

 4. 2M ALLIANCE BROKE UP

In conclusion:

Maersk and CMA – CGM aim to integrate box

shipping with the broader logistics chain.

MSC wants to keep its focus on the core ocean

going business.
5. GREEN
SHIPPING
 5. GREEN SHIPPING
MAERSK
Mearsk have committed to becoming
carbon-neutral by 2050 and have set
intermediate targets to reduce carbon
emissions.

In 2021 Maersk Invested in fuel-

efficient vessels, explored the use of
biofuels and methanol as alternative
fuels, and implemented energy-saving
technologies like waste heat recovery
systems.
ALPINE SKI HOUSE
 5. GREEN SHIPPING
MAERSK

They collaborate with partners,

including the Global Maritime Forum,
to drive industry-wide sustainability
initiatives.

ALPINE SKI HOUSE

 5. GREEN SHIPPING
CMA – CGM
In 2017 CMA – CGM invested in
LNG-powered vessels.
Introduced innovative container
designs that reduce empty
container transportation,
optimize cargo loading, and
reduce fuel consumption.

They actively participate in industry programs and initiatives

focused on sustainability, such as the Getting to Zero Coalition.
ALPINE SKI HOUSE
 5. GREEN SHIPPING
MSC
MSC invested in the retrofitting of
their existing vessels with advanced
emissions control systems.

MSC has also collaborated with

partners to develop and test
biofuels for use in their vessels.

MSC participate in industry

sustainability initiatives and have
committed to becoming carbon-
neutral by 2050.
ALPINE SKI HOUSE
 THANK YOU
FOR YOUR ATTENTION