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London's Economist mulls MSC and Maersk's decoupling
来源：shippingazette 编辑：编辑部 发布：2023/03/17 09:49:48
THE No 1 shipping giant, Mediterranean Shipping Co (MSC) and its No 2 rival Maersk have decided to end their code-share like alliance - 2M - and go their own way in 2025 in two very different directions, reports London's Economist.
"In effect, then, the No 1 and No 2 companies in an industry at the centre of world trade are placing radically different bets on the future," said the Economist.
"Whether either succeeds or not, they provide an intriguing natural experiment on different approaches to industrial commoditisation.
"It is an extraordinary parting of the ways. For eight years the two companies have been in an alliance, called 2M, in which, like airlines swapping passengers in code-sharing agreements, they provide container space on each other's vessels," said the report.
As Alan Murphy of Sea Intelligence, a research firm, notes, alliances are a "fast track to commoditisation".
Once you entrust your cargo to someone else's ships, he said, it is hard to differentiate yourself. Moreover, as the strategies of both companies diverged, the alliance made less sense.
"MSC used boom times during the Covid pandemic to order enough ships to go it alone. As Maersk focused on logistics, it needed complete control of its cargoes, which was easier if they were on its own ships.
Their divergent strategies are bold¡ªalmost to the point of recklessness. MSC's buying spree will contribute to serious overcapacity in the market this year, driving down shipping rates.
"The assumption is that it hopes that its overwhelming size will enable it to achieve economies of scale, reduce unit costs and further expand market share, which is about 17 per cent by volume," said the Economist.
Maersk has a different problem. "However sensible it is to maintain a disciplined order book, the risk is that its smaller fleet relative to MSC's puts off customers who want a greater choice of sailings and destinations. Maersk argues that many of its customers will benefit more from reliability, data-driven insights and the flexibility to divert cargoes at short notice."
Of course, Maersk's logistics business will compete with forwarders, such as DHL and Kuehne+Nagel, which perform similar functions using a variety of carriers. "If Maersk's strategy puts their noses out of joint, they may stop directing cargoes to its ships," said the report.
"In effect, then, the No 1 and No 2 companies in an industry at the centre of world trade are placing radically different bets on the future," said the Economist.
"Whether either succeeds or not, they provide an intriguing natural experiment on different approaches to industrial commoditisation.
"It is an extraordinary parting of the ways. For eight years the two companies have been in an alliance, called 2M, in which, like airlines swapping passengers in code-sharing agreements, they provide container space on each other's vessels," said the report.
As Alan Murphy of Sea Intelligence, a research firm, notes, alliances are a "fast track to commoditisation".
Once you entrust your cargo to someone else's ships, he said, it is hard to differentiate yourself. Moreover, as the strategies of both companies diverged, the alliance made less sense.
"MSC used boom times during the Covid pandemic to order enough ships to go it alone. As Maersk focused on logistics, it needed complete control of its cargoes, which was easier if they were on its own ships.
Their divergent strategies are bold¡ªalmost to the point of recklessness. MSC's buying spree will contribute to serious overcapacity in the market this year, driving down shipping rates.
"The assumption is that it hopes that its overwhelming size will enable it to achieve economies of scale, reduce unit costs and further expand market share, which is about 17 per cent by volume," said the Economist.
Maersk has a different problem. "However sensible it is to maintain a disciplined order book, the risk is that its smaller fleet relative to MSC's puts off customers who want a greater choice of sailings and destinations. Maersk argues that many of its customers will benefit more from reliability, data-driven insights and the flexibility to divert cargoes at short notice."
Of course, Maersk's logistics business will compete with forwarders, such as DHL and Kuehne+Nagel, which perform similar functions using a variety of carriers. "If Maersk's strategy puts their noses out of joint, they may stop directing cargoes to its ships," said the report.