China Cosco Shipping unit forms alliance with three container giants on Asia lanes

China Cosco Shipping Corp, the newly created entity following the merger of China Ocean Shipping (Group) and China Shipping Group in January, has formed an alliance with three of the world’s leading container operators to grab a share of the trade on the shipping lanes connecting Asia.

Cosco Container Lines, a unit of China Cosco Shipping that became the world’s fourth-largest container shipping line after the merger, had signed a memorandum of understanding to form a partnership with France’s CMA CGM, Hong Kong-based Orient Overseas Container Line and Taiwan’s Evergreen Line in Shanghai, the carrier said in a statement on Wednesday.

The merger between China Ocean Shipping and China Shipping came as part of the mainland’s restructuring of its state-owned enterprises.

The Ocean Alliance, which is due to begin operations in April next year with an initial period of five years, would allow the members to serve the sea lanes covering Asia, the statement said.

The new alliance had yet to obtain regulatory approvals, it added.

Daniel Meng, an analyst at CLSA, said the alliance would be the second-largest in the world after 2M, the vessel-sharing partnership between Maersk Line and Mediterranean Shipping Co.