French container shipping group CMA CGM has sealed an alliance with two rivals after a failed attempt to partner with bigger peers Maersk and Switzerland's MSC, vetoed by China earlier this year due to competition concerns, according to Reuters News.
CMA CGM has agreed a route-sharing alliance with China Shipping Container Lines Co Ltd. (CSCL) and United Arab Shipping Co. (UASC) to be known as Ocean Three in a bid to save costs on key container routes.
The shipping industry has been battling overcapacity linked to a glut of new vessels ordered during a boom period before the global financial crisis of 2007-2009, forcing operators to look for ways of becoming more efficient.
CMA CGM said the new alliance would cover routes between Asia and Europe, as well as Asia and North America.
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