Due Diligence Key To Successful Liner Mergers

Like the change in seasons, every few months brings a new report of potential consolidation in the liner shipping sector. Container carriers continue to look for new ways to address overcapacity and reduce costs while maintaining the highest possible level of service to their shipper customers. Vessel sharing alliances have been part of the solution, as they can dramatically reduce capital costs. But they do not reduce overhead costs, as each carrier continues to maintain its own marketing and administrative operations. To achieve efficiencies and reduce overhead costs, many carriers are looking at potential mergers as a means to grow their networks while reducing capital cost and lowering overhead spending.