#ContainerRates- The World's largest container line, AP Moeller-Maersk A/S said it will pool vessels with its two biggest rivals in an effort to manage overcapacity and raise unprofitable freight rates, according to Bloomberg.
The Danish giant Maersk Line, Mediterranean Shipping Company (MSC) and CMA CGM SA will form a network that will comprise of 255 vessels on 29 loops, the Copenhagen-based shipping line has confirmed.
Together these lines will co-operate on the world's three largest trade lanes: Asia-Europe, trans-Pacific and trans-Atlantic. Container companies including Maersk Line, have said they plan to raise rates next month following the price declines caused by overcapacity.
The Shanghai Containerised Freight Index, a measure of box rates out of China, has dropped 21% in the last three months as industry efforts to boost prices earlier this year failed to yield results.
"We're joining forces after experiencing virtually no growth in these tree trade lanes since the financial crisis in 2008," Maersk Line chief trading and marketing officer Vincent Clerc said.