CMA-CGM Hamburg Süd cooperation should lead to monitoring

The increased collaboration between CMA-CGM and Hamburg Süd will make sure that the container liner market will be one step closer to total convergence. This will reinforce the risk of reducing service quality and sailing frequency as well as free choice for manufacturers and retailers, as well as enhancing prices, the European Shippers’ Council (ESC) concludes. Neither it will improve trade nor growth of economies.

It is not a surprise as it comes following another agreement between UASC and Hamburg Süd. The golf company has already explained that Hamburg Süd will take advantage of the Ocean Three network.

Global point of view
According to the ESC, representing the logistic interests of manufacturers, retailers and wholesalers collectively referred to as shippers, this new global partnership underlines the fact that the maritime liner competition should be seen from a global perspective and not at regional level. Uniform process and analysis framework should be developed by competition authorities to deal with this new paradigm. Looking at alliances through the wrong end of the telescope will not allow authorities to understand properly the market dynamics, the ESC argues.

Competition
The ESC urges national competition authorities to agree between themselves on a certain number of competitive sensitive data that could be monitored. Operational and juridical links between ship owners, correlation between price modification and capacity modification should be part (among others) of data monitored.By having these data monitored, competition authorities will switch from a curing stance to a more preventing mood which is far better for economic activities.