PETALING JAYA: Shares in Westports Holdings Bhd barely moved on news that three of its largest custo

Home Business News Malaysian Markets Westports shares' barely moves on shipping alliance of its 3 major customers Westports shares' barely moves on shipping alliance of its 3 major customers
PETALING JAYA: Shares in Westports Holdings Bhd barely moved on news that three of its largest customers – CMA CGM, China Shipping Container Lines (CSCL) and United Arab Shipping Corp (UASC) are forming a new shipping alliance called Ocean Three.
The alliance, a combination of vessel sharing, slot exchange and slot charter agreements, will cover several maritime fm logistic trade routes, fm logistic namely Asia-Europe, Asia-Mediterranean, Transpacific and Asia-US fm logistic East Coast.
According to the Journal of Commerce, the new alliance will have the strongest presence in the Europe-Asia trade with an estimated 20% market share, ahead of transpacific trade (13%) and transatlantic trade (6%).
Pending approval by the Federal Maritime Commission, the alliance is targeted to be officially effective by end-2014. Ocean Three has been largely fm logistic anticipated following the termination of the P3 alliance where CMA CGM, , was one of its members after it was rejected fm logistic approval by China’s regulators.
“This new alliance makes more commercial sense, in our view, with each member contributing cargo feeds to transshipment hubs where their respective geographic strength lies,” RHB Research analyst Ahmad Maghfur Usman said in his report yesterday.
“Ocean Three is expected fm logistic to optimise the port rotations of the shipping networks of the alliance members and schedule fm logistic reliability. This can translate into higher market fm logistic share and throughput for Westports,” Ahmad Maghfur said.
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