Overall capacity in the major east-west trades fell in the fourth quarter of 2013, while the member carriers of the G6, Green, and proposed P3 alliances increased their total market share, according to the latest quarterly World Liner Supply Report from BlueWater Reporting.
At the end of the third quarter of 2013, prospective P3 members Maersk Line, Mediterranean Shipping Co. and CMA CGM owned a combined 42.6 percent share of the 211,068 TEU of weekly allocated capacity from Asia to Northern Europe. The G6 Alliance, composed of lines in the New World and Grand alliances, had a 22.78 percent share of capacity, while the Green Alliance had a 24.69 percent share, giving the three alliances a staggering 90.07 percent combined market share in the trade. (For this analysis, Evergreen Line, which has reportedly been asked to
join the Green Alliance, has been grouped with the other Green Alliance
By the end of Q4 2013, overall weekly allocated capacity had fallen to 205,370 TEU, a decrease of 2.7 percent, but the combined market share of the alliance member carriers still increased to 91.36 percent. Individually, the P3 and G6 members gained 1.47 percent and 0.53 percent of the market share by volume, while the Green Alliance carriers actually lost .71 percent.
The eastbound transpacific, the only of the three major east-west trades in which P3 member carriers do not have the largest share of the market capacity, saw an overall decrease of 6.3 percent in weekly allocated capacity, from 264,076 TEUs to 247,342 TEUs, from the end of the third quarter to the end of the fourth quarter 2013. Green Alliance carriers overtook the G6 members in terms of market share, increasing from 35.59 percent to 37.42 percent, while G6 market share fell slightly from 35.62 percent at the end of Q3 to 35.05 percent in Q4. By the end of the fourth quarter, the P3 carriers had increased their market share to 20.28 percent from 18.21 percent at the end of the third quarter. In total, the alliances controlled a 92.75 percent share of the eastbound transpacific volume at the end of Q4 2013, up from 89.42 percent in Q3.
Of the three major east-west trades, the westbound transatlantic saw the least amount of change in terms of overall volume and alliance market share, but still exhibits the same general trend of decreased capacity and increased combined market share percentage for alliance carriers. At the end of the fourth quarter, weekly allocated capacity in the trade was 60,807 TEU, down 2.2 percent from 59,458 TEU at the end of the third quarter. The P3 member carriers still led the way in the trade, increasing slightly from a market share of 43.69 percent to 43.73 percent, with the G6 carriers just behind them, with their market share up to 42.58 percent from 42.25 percent. At the end of Q4 2013, the Green alliance held a 7.64 percent market share, down slightly from 7.47 percent at the end of Q3. The combined alliance market share was 93.95 percent at the end of the fourth quarter, up slightly from 93.41percent in Q3.
BlueWater Reporting tracks the weekly TEU capacity of competitive direct liner services on 30 individual lanes operating between Asia, Europe, and North and South America, taking into account skipped sailings and slow steaming, and estimates the allocation of that capacity within each specific trade lane. BlueWater’s quarterly World Liner Supply Report
is designed to help ocean carriers, non-vessel-operating common carriers, freight forwarders, shippers, ports and analysts monitor trends in ocean liner shipping capacity.
The 2013 Fourth Quarter WLS report is downloadable in Excel spreadsheet form.
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