Maersk & MSC say they will split in 2025 💔
Since 2015, the two largest container lines in the world have been in a vessel-sharing agreement (2M Alliance) - set to expire in 2025. Last month, the companies announced that they would not be continuing the partnership past that point. Their cooperative relationship through their participation in a number of strategic alliances currently enables them to share vessel capacity, reduce costs, and improve services for their customers. This 2M Alliance involves the sharing of vessel space on a number of trade routes, primarily between Asia and Europe, and is designed to improve schedule reliability, reduce transit times, and provide customers with a wider range of services.
The termination of the 2M Alliance could result in a reduction of vessel capacity and service offerings on some of the trade routes covered by the alliance. This could lead to increased competition between the two companies, as they would be competing for market share instead of collaborating. The reduction in vessel capacity could also lead to increased shipping rates and longer transit times for customers.
However, this could provide an opportunity for other shipping lines to gain market share by forming their own strategic alliances or by expanding their operations. This could result in more intense competition in the industry, which could benefit customers by providing them with more options and lower prices.
Shipping a 40-foot container from Shanghai to New York now costs nearly $10,000, causing frustration among importers and talk of a market bubble.