No decision has yet been made on where the new Chinese mega carrier – China Cosco Shipping Corp (COSCOCS) – will go in terms of container alliances, according to a spokeswoman in an emailed reply to Reuters on Friday.
Speculation has been rife that COSCOCS will link with CMA CGM, Evergreen and OOCL to create a new alliance that would shake up all the existing liner alliances. Cosco is currently part of the CKYHE alliance, while China Shipping is in the Ocean 3.
“The new group will choose its future partners carefully, and is committed to building a strong and competitive alliance,” a spokeswoman for COSCOCS said in an email to Reuters.
“To ensure continued and stable services, the company will maintain operations in the two alliances until the alliance reorganisation is complete.”
If new alliances are formed, there will tough competition in the market. So what will happen to the small players?