Industry analyst Drewry believes that the anticipated merger between Chinese state-owned companies, Cosco and China Shipping Container Lines (CSCL), could cause a domino effect on existing carrier alliances and further carrier mergers in Asia damaging to industry competition.
In a weekly report, the maritime advisor stated that while the merger would make financial sense for the firms involved, it could also ramp up competition amongst carriers and lead to a realigning of existing alliances.
Shares in China Cosco, China Shipping Development (CSD) and China Shipping Container Lines (CSCL) were suspended from trading on 10 August.
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