Alliances of maritime liner container carriers: the essence of this phenomenon and its practical significance

Abstract

Alliances are a key element of modern liner shipping. This article introduces alliances as a new form of consolidation of container lines and offers general information about their activity. The authors examined numerous reliable sources to evaluate different factors which influence the results of shipping lines' participation in global alliances. The authors offer their appraisal of alliances based on research as well as their own experience in shipping. They consider the liner market as an oligopoly of a few companies, which are closely intertwined with the world’s largest corporations and where international law has been substituted with a control by regulators from some of the most powerful countries in the liner trade. This system allows the business of some customers to be protected, while applying limitations on others. Undoubtedly, the alliances have an influence on Russian foreign trade. In summary, the authors believe that the Russian authorities should carefully investigate and control the service of global carriers and alliances. The chief aim of effective control is the free participation of Russian companies in foreign trade, which is not possible without due support of maritime transport. The alliances are truly global entities. They combine both traditional and new methods, including cutting-edge capabilities of information and digital technologies. To prevent a negative influence of the oligopoly, a new international initiative to regulate the alliances as was done with shipping conferences is highly welcomed by the authors.