MSC and CMA CGM, the world’s second and third largest container shipping companies, announced on December 1, 2011 that they have formed a “broad-based operating partnership” that covers several trades, including Asia-Northern Europe, Asia-Southern Africa, and all of the South American markets.
“The agreement, which is designed to improve the two partners’ respective performance, will help to drive extensive operating synergies and enhance quality of service for all of their customers,” the family-owned companies said in a joint statement.
They added that the partnership will also enable the two companies to “deploy the best ships in each of their fleets, while increasing the number of ports of call and frequency of sailings” on a certain number of trades.
The team-up is seen as a reaction to growing losses in the sector brought about by a capacity glut, slow demand, and higher transport costs that have pushed box lines to seriously consider consolidation and merger.
“The agreement offers us new opportunities to optimise the use of our respective fleets, improve our transit times and increase our performance,” said Diego Aponte, vice president of MSC.
Rodolphe Saadé, executive officer of CMA CGM Group, said: “For more than 30 years, our two companies have followed the same trajectory and for a number of years we’ve cooperated on a few lines. We have decided to step up our partnerships, which reflect a commitment to long-term cooperation and will enable us to offer customers improved solutions and services.”
Photo by Alan Stanton
