Strategic Alliances in Container Lines
AbstractThe container-shipping industry's poor performance in 2011 and its continued struggles in 2012 are primarily the result of supply and demand imbalance, which triggered intense competition and price wars. Some carriers have begun to recognize the importance of alliances, as reflected by their expanded efforts to collaborate during the past year. This article present how the global rates in container industry had dropped as the carriers added ships in anticipation of an economic recovery, causing overcapacity. Container lines began cutting capacity and raising rates to restore profitability. The article conclude that a way of avoiding for container-shipping lines maritime market fluctuations and increasing opportunities of success in the event of a fierce competition is a strategic alliance.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43157.
Date of creation: 2012
Date of revision:
container; alliance; profit; rate;
Find related papers by JEL classification:
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-COM-2013-01-07 (Industrial Competition)
- NEP-TRE-2013-01-07 (Transport Economics)
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