Newly created China Cosco Shipping to retain its old divided rival alliances
Time：2016-02-23
Browse：138
Many say the alliance system will be shattered with the merger of China Ocean Shipping (Group) Company (Cosco) and China Shipping Group.
China Cosco, a unit of Cosco Group, is part of the CKYHE alliance with "K" Line, Yang Ming, Hanjin and Evergreen, while China Shipping is a member of Ocean Three with CMA CGM and UASC.
But the new COSCOCS told Reuters in an email: "The company will maintain operations in the two alliances until the alliance reorganisation is complete."
In 2014, Chinese authorities blocked a deal between Maersk Line, Mediterranean Shipping Co (MSC) and CMA CGM. But shorn of CMA CGM the smaller combination of Maersk and MSC received the go-ahead to form an alliance.
COSCOCS`s launch also comes two months after CMA CGM proposed to buy Singapore`s Neptune Orient Lines for US$2.4 billion. NOL`s container arm is APL, which is in the G6 alliance with Hapag-Lloyd, Hyundai Merchant Marine, MOL, NYK and OOCL.
Separately, Coscocs has revealed it plans to have two million TEU container shipping capacity by end-2018, up from the current 1.58 million TEU it has now, reports China Daily.