Why did the EU decide to extend shipping alliances’ rights? This article in the Loadstar points to a short piece on Linked in calling attention to a study by Olaf Merk (and others) critiquing alliances and what they have done to the ocean shipping and port industries.
The study points out alliances were useful in the distant past, but today they are serving to consolidate ocean shipping, reduce offers and most every service, and they also put great pressure on ports to engage in competition on facilities, a costly endeavor that results in over-allocation of capital for the use of few lines.
I’ve attached the Merk etal. article below. He’s an eminent port and maritime economist, and what he writes should be taken seriously.
By Alex Lennane 22/11/2019