Analysts warn of potential rate war between new alliances

In the wake of the 2M partners announcing plans for the 22 strings they plan to operate on east-west routes this winter, industry analysts have warned that the schedules from Maersk Line and Mediterranean Shipping Company (MSC), could lead to a fall in freight rates as competing alliances battle it out in key trades.

Alphaliner said that the first of these battleground trades could be Asia-Mediterranean services, where 2M and the competing Ocean 3 alliance of CMA CGM, United Arab Shipping Company (UASC) and China Shipping will jostle for supremacy.

Analysts argue that Maersk and CMA CGM will try to retain their current coverage, which could lead to an 11% increase on the trade, or an extra 14,000 teu per week.