Recently, the suspension of the four major alliances on the Asia-Europe route has caused the industry to reflect, is the scale advantage of the alliance facing challenges? In the latest report, McKinsey proposed that when the vessel arrived at the port, the container shipping alliance's scale advantage at sea came to an end. For the alliance, expanding land cooperation to improve efficiency and profitability is an important step in the future.
The report shows that by integrating the operations of alliance members, the overall base cost and the complexity of the land-based work are reduced. For example, in the case of land cost in the United States, this integration will save $100 million annually for members of the medium-sized alliance.
       Analysts have found that the economies of scale of shipping alliances reduce unit costs and give coalition liners irresistible cost savings at sea, but even if they are tied together, their operations are separate. Each liner company and terminal has its own agreement, freight contract and scheduling, railway agreement and operation management.
       The McKinsey report said that although the alliance allows larger liner companies to allocate resources reasonably, the main beneficiaries are smaller liner companies, and smaller liner companies do not have to spend billions of dollars on large fleets to make more The destination provides services. These smaller liner companies have the advantage of using large vessels on major trade routes. The fuel efficiency of a 14,000 TEU vessel is 30% higher than that of a 7000 TEU vessel, and this savings is quickly reduced.
       However, recent financial results indicate that the largest liner company is still a home for the shipping industry. McKinsey found that the benefits of the shipping alliance did not make the financial performance of the alliance members better, and by expanding the alliance's land operations cooperation, its members will be able to achieve the most substantial cost savings in economies of scale, which will Benefit all Alliance members.
       So how do you integrate alliance operations to reduce the total base cost and solve the operational complexity? To achieve this goal, the aligned liner companies need to be as single as possible to overcome obstacles and take action on land operations. The joint operation will provide real value for the liner company. This value will be reflected in the fact that the alliance can manage multiple terminals as if it were to manage a single terminal, which would mean adhering to a management team to lead an operational system. A single multimodal transport company will manage the integrated rail freight flow and connect with the US railroad, and the improved logistics and logistics will save the alliance company. If the alliance can integrate truck freight to obtain lower road transport prices, then truck freight is another manifestation of joint operational value. Each alliance can establish a centralized truck freight plan and mobilize each truck to reduce idle space and reduce costs. McKinsey believes that by taking these steps, alliance members will save a lot of money.
      But analysts also outlined the barriers to joint operations, including regulatory issues, and how liner companies are looking for ways to make the alliance work more closely, in compliance with applicable regulations. Another obstacle is the complexity of the terminal contract. Each member of the alliance has signed contracts with the port bureau and workers respectively. Some liner companies operate the terminal as a profit center. Some liner companies have sold shares and used the continuously processed freight volume as a commitment to private equity investors.
       McKinsey believes that alliance members have different priorities, and not all liner companies want to implement joint operations immediately. And the joint work of two or three liner companies in the alliance can achieve most of the cost savings.
       The report also stated that for liner companies that are willing to perform joint operations, the next step is to set up an agreed “clean†team to collect each liner company's information on the terminal, multimodal capacity, cost, financial performance and contract terms. Related information. The team then assessed the opportunity as a whole without reservation.
       Once the possibility of cost savings is clarified, liner companies can begin to renegotiate contracts and establish new achievable terminal operations and multimodal transport companies.
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