Professional Documents
Culture Documents
• 2000 - 2007
• Industry is preparing for a tsunami of trade. PPP is solution to infrastructure
challenges. The West Coast Rules, East coast secondary.
• Individual Lines are hunting for acreages (waterfront) and concessionary
agreements.
• The word on the street is that LA / Long beach are running out of space.
• Steamship lines looking north for added capacity
• Growth rate -double digits - year on year for the past 15 years.
• Attitude is you can’t loose. Terminals are money making machines.
• Steamships are racking up significant profits, looking to gain market share
Commercial Landscape 2000 - 2017
•2007 - 2010
• US economy hits the skids 2007- 2008.
• 2007 - 2009, Severe vessel TEU overcapacity do to lack of demand.
• Idling of ~12% of global fleet.
• Economy in freefall.
• Slow- and ECO steaming instituted to soak up excess capacity.
• Industry in shock. General belief that some will go bankrupt.
• Large scale bailouts and support from governments save some steamship
lines.
Commercial Landscape 2000 - 2017
2010- 2011
• Some lines return to profitability .
• Massive cost cutting by the lines, reduction in customer service.
• Feb of 2011 Maersk announces order for 20 triple E. 18,000 teu.
• Other shipping lines follow suite and the race to the big ship is on.
• Market share increase is the name of the game. At the cost of rates.
• Market begins consolidating. Alliances begin to form. Lines looking to
dominate are just stay alive.
Commercial Landscape 2000 - 2017
• 2011 -2015
• Huge injection of larger, 18,000teu vessels.
• 2014 and Q1 2015, West Coast Labor issues.
• 2016 Port of Portland shuts down only container terminal.
• Overcapacity creates massive rate volatility.
• Hanjin declares bankruptcy.
Commercial Landscape 2000 - 2017
• 2017
• April – New set of alliances are formed shrinking from 4 to 3.
Alliances both the old and the new
• Previous shipping alliances:
• 2M Alliance: Maersk and MSC
• Ocean Three Alliance: CMA CGM, UASC, China Shipping
• G6 Alliance: NYK Line, OOCL, APL, MOL, Hapag-Lloyd, HMM
• CKYHE Alliance: K Line, COSCO, Hanjin Shipping, Evergreen, Yang
Ming
The New Alliances
• New shipping alliances
• 2M Alliance: Maersk, MSC
• THE Alliance: NYK, MOL, K Line, Yang Ming, Hapag-Lloyd
• Ocean Alliance: CMA CGM, Evergreen, OOCL, COSCO Shipping