Supply-demand stabilising

Although the main benefit of mega-alliances is to reduce operating costs, those currently in the making are enabling ocean carriers to better match supply and demand, an opportunity they are likely to seize, according to Drewry.

It is possible that just four carrier groupings could control 98.5% of all effective vessel capacity from Asia to Europe by the beginning of next year (2015); this could make it easier to fine tune vessel capacity by regularly adjusting vessel capacity to meet seasonal cargo demand.

One drawback to larger vessels is that withdrawing whole services during the winter season has become too ‘chunky’, suggests Drewry, particularly between Asia and Europe.  It is for this reason carriers follow the trend of cancelling sailings instead.