Question: When does two plus two equal 95? Answer: When the two new vessel alliances that will launch their joint services this month join the two existing alliances that are expanding. Together, the 16 container lines that are consolidating their routes and services will control 95 percent of the cargo volumes moving in the major east-west trades.
Will this reduce competition as too much market share falls into the hands of alliances, giving them more control over pricing and vessel capacity, as some critics say? Or will the increasing consolidation of services produce more efficiencies and economies of scale that will enable the carriers to survive in these days of overcapacity and plunging freight rates? There are no clear answers.