U.S. Port Costs likely to Raise in April

Bill Mongelluzzo of The Journal of Commerce states,

US ports will face unprecedented operational challenges when ocean carriers on April 1 restructure their vessel-sharing alliances, requiring carriers, terminal operators, and equipment providers to develop a plan so shippers’ costs don’t spiral out of control.

Ocean carriers on April 1 will reduce from four to three the number the vessel-sharing alliances that will dictate vessel strings and port calls around the world. The Ocean Alliance will control 41 percent of the total trans-Pacific trade, THE Alliance will have a 29 percent market share, and the 2M Alliance plus Hyundai Merchant Marine share will be 21 percent, according to analyst Alphaliner. The three alliances collectively will control 91 percent of the US trade volume.

To read the full article, visit Journal of Commerce.