News / What Analysts Are Saying About The Maersk-MSC split

What Analysts Are Saying About The Maersk-MSC split

14 March 2023 - by - in Industry News
What analysts Are Saying About The Maersk-MSC split

Large cargo ship

The issue between two major shipping carriers, MSC and Maersk, has created a massive concern in the industry regarding future transportation. According to experts, the recent split of their 2 million dollar alliance may do more harm than good in the shipping industry. While each company now has to search for new alliances in what looks like a shipping container recession, it leaves many unanswered questions for analysts as to what changes these companies will make. As the world’s two largest shipping container lines, the split does not seem like a wise decision, according to analysts. However, the question now is what will unfold in the near future for container transportation? 

What Is Happening With the Maersk-MSC Split?

For several years, the world’s two largest shipping lines, MSC and Maersk, have held a vessel-sharing alliance of approximately 2 million dollars. As of 2025, their alliance will mutually end as they continue pursuing their individual strategies in the industry. Both companies have stated the split was a mutual decision and will continue providing outstanding services through the end of the partnership and then go their separate ways as they serve their own customers. 

Since the 2020 Pandemic, MSC unexpectedly grew its business, expanding its capacity with other companies. Maersk, however, remained steady as it focused on providing logistical services. According to experts, Maersk now wants to focus on the evolving needs of its customers, and remain a flexible source for them. By terminating its alliance with MSC, it allows Maersk to better meet its customers’ individual needs. MSC, on the other hand, will continue increasing its fleet and have plenty of resources to offer its own world-wide network and support other partners. 

What Do Analysts Think Will Happen With Future Shipping Containers?

The question analysts have now is whether Maersk will form other alliances in the industry. Since joining forces with MSC, Maersk has had access to an expanding network for their company. When the alliance ends in 2025, they will no longer have the benefits they previously enjoyed for many years. Analysts remark the company will need to search for other replacement options if they want more influence in the industry. Administration in the company remarks that the company will try to focus on key markets where they can form strong partnerships and provide services. A greater concern from analysts is that other shipping line companies may change their alliances, too. This could lead to tension among other companies and bring a potential halt in transportation. Dealing with time critical shipping logistics is always a possible concern when it comes to navigating new schedules and rates with other suppliers. 

How Will the Spilt Affect Other Companies?

Many analysts believe, in some cases, that alliances can reduce freight costs, but you may lose some control over product choice. In this case, MSC may continue increasing productivity because they worked hard to create wide relationships with other companies. However, this may not seem like the best overall solution. According to analysts, one company that controls a large fleet may sell their older models. Returning older models to the market may have negative effects on the market.   

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