To the concentration of the shipping business in ten major shipping companies through mergers or load-sharing agreements, substantially reducing the current overcapacity, shipping companies, to improve their profitability, raise freight rates, will call fewer ports and use increasingly terminals operated by its affiliates, without leaving much room for manoeuvre to the users.
Considering it of general interest, we transcribe below article written by the executive director of Latinports, Julian Palacio, to Informar, magazine of the Chamber of Shipping of Ecuador (Camae in Spanish), which has just been published.
Port operators belonging to shipping lines are making alliances among themselves and with traditional multinational operators (that with reason are defending the space gained on the market), approaching among all 50% of the world market and gradually reducing the space to national operators. Is this oligopoly suitable for trade?
Article by the Executive Director of Latinports, Julian Palacio, for Special Edition July-August 2015 of the magazine Noticreto of the National Association of Concrete Manufacturers of Colombia (Asocreto, in Spanish)
It’s imperative a drastic reduction in the current capacity of the shipping industry, including the suspension of the construction of new mega containerships.