Global Strategic Alliances in container liner shipping: knowledge sharing and decision-making through contractual governance structures

Since the 1990s, Global Strategic Alliances (GSAs) in container liner shipping have strengthened their hegemony through a continuum of horizontal cooperations that have led to a highly concentrated industry. GSAs’ partners have structured and expanded their activities thanks to an overlaying of diverse cooperative working agreements (CWAs) on logistic efficiencies and door-to-door operations managed by common operation centers and comprehensive IT systems. The recomposition of existing GSAs, the numerous sanctions of alliance members in the United States and the expiry of the European Consortia Block Exemption Regulation, raise questions on the GSA’s qualification and their policy framework. Based on a sample of production agreements, our analysis delves into knowledge sharing and decision-making through the GSAs’ contractual governance structures. The key findings highlight how alliance members exchange strategic data, institutionalize competitive intelligence and have reached a high degree of integration. Making decisions as single entities, GSAs have to some extent merged their container supply chain management and may receive the qualification of de facto companies. Backed by a new evaluation grid of alliances, pro-active antitrust oversight and coordinated policies are finally suggested for policymakers.