Despite the turbulences of the container shipping alliance structure due to CMA CGM’s takeover of APL, the G6 Alliance is likely to continue their present composition for another 12 months.
Authorities in the US, EU, China and other jurisdictions around the globe are studying the commercial impact of the acquisition of world’s 13th largest container line by 3th ranked CMA CGM, which is expected to take another six months. APL’s required notice for withdrawal from the east-west vessel sharing agreement has been reduced from 12 to six months.
Even after the finalization of the CMA CGM acquisition, APL will still need to provide a six-month notice period, which should see the current service arrangement continue till the end of 2016.
The G6 alliance confirmed : “The transaction is subject to regulatory approvals. Until there is further development, the G6 Alliance assures that its current service structure will remain stable, and expects to operate as aligned through 2016.”
If CMA CGM completes its acquisition of APL and acts on its intention to transfer it into the Ocean Three Alliance, it will dominate the VSA it operates in conjunction with UASC and China Shipping.
The shake-up will also likely affect the CHKYE alliance with the merger plans of China Shipping and Cosco, with the latter taking over the container shipping operations of the former.
Despite the fact there was no mention of the combined companies’ alliance plans, the most straightforward option would be simply for the China Shipping capacity to be added to the CHKYE.