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Failure of alliances to lift rates to hurt shippers long-term

from JOC.com

If the global mega-shipping alliances launching in April don't drive compensatory freight rates, shippers should expect more bankruptcies and mergers, much like the airline industry has experienced over the last two decades, former Hyundai Merchant Marine CEO of the Americas David Arsenault warns. The top global shipping lines, which today operate in four vessel-sharing alliances, will reorganize effective April 1 into three larger groups with more leverage over beneficial cargo owners and ports. more


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