Page 35: of Maritime Logistics Professional Magazine (Jul/Aug 2017)

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LINER TRADES

Consolidation in itself does not necessarily lead to pricing power or improved fnancial health. The container shipping market is fundamentally driven by demand and supply factors and until the capacity overhang comes under control, it is highly likely that price competition will continue to prevail.

– Mr. Hua Joo Tan,

Executive consultant at Alphaliner shipping investor Oaktree Capital). ily lead to pricing power or improved fnancial health. The

On a mainly economic front (tinged with a heavy dose of container shipping market is fundamentally driven by demand sentimentality for the days of U.S. leadership in the sector), and supply factors and until the capacity overhang comes un- long time shipping watchers will note that it was NOL that ac- der control, it is highly likely that price competition will con- quired American President Lines (APL) in 1997. A small car- tinue to prevail.” rier with the US Lines nameplate (evoking the famous brand Consultants who provide strategies for shipping companies that suffered a failed re-invention in the 1980s), was acquired of all stripes are always advising their clients to gain ‘pric- by CMA CGM in 2007. ing power’ by moving away from ‘commoditization,’ where one slot is indistinguishable from another. Interestingly, CMA

Just Over the Horizon CGM announced that commencing in Q4, it would be teaming

What’s in store for the industry? Its economics may remain up, in a VSA, with refrigerated cargo specialists Seatrade and unchanged. Mr. Hua Joo Tan, Executive consultant at Alpha- Marfret, to offer a weekly service to shippers of cargo such liner, offered that, “Consolidation in itself does not necessar- as fruits and meats. According to CMA CGM, “13 modern

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