Strategic Alliances in Container Lines

The 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.