The world’s two biggest shipping lines – A.P. Møller-Maersk (OTCPK:AMKBY) (OTCPK:AMKAF) and Mediterranean Shipping Co. – said Wednesday they will end their 2M vessel sharing partnership in 2025, a move S&P Global Platts said will shake up the container shipping market and perhaps trigger a price war.
The decision to wind down the 2M alliance comes as shipowners are dealing with declining cargo volumes and excess vessel capacity that has pushed down freight rates to pre-COVID levels, which has shifted the balance of power back to customers of 2M and other big alliances.
In a joint statement, the chief executives of Maersk (OTCPK:AMKBY) (OTCPK:AMKAF) and MSC said much has changed since the 10-year partnership was signed in 2015, and ending the agreement “paves the way for both companies to continue to pursue their individual strategies.”
Maersk (OTCPK:AMKBY) (OTCPK:AMKAF) is pushing to “accelerate becoming an integrated provider of logistics, connecting, and simplifying our customers’ supply chains,” while MSC has built up its fleet to the point that it has overtaken Maersk in the number of ships it operates.
A.P. Møller-Maersk (OTCPK:AMKBY) (OTCPK:AMKAF) recently named Vincent Clerc as its new CEO.