ALLIANCES IN THE SEA SHIPPING MARKET:BENEFITS AND RISKS FOR WORLD ECONOMICS

Abstract

Various forms of partnership of business entities are widespread in the economy. One variety of this partnership is competitive cooperation or coopetition (from the words «cooperation» and «competition»), where competitors without stopping real competition for the consumer, are joining forces in the industrial, scientific, technical, financial and other sectors to reduce costs and improve customer service. The most striking result of this collaboration for all its members is the emergence of a unique competitive advantage over other market players outside the partnership (alliance). The objective of the author is to investigate competitive cooperation at the cargo shipping market as a certain form of partnership, using analysis, evaluation method and economic approach. The author analyzes the differences of competitive cooperation from other forms of business organization. The risks are shown, which are associated with development of alliances at the container shipping market as well as with dual role of such economic unions, when at the same time with maximization of benefits partners have undue pressure on consumers and limit the competitive industry environment. The story of the project of alliance P3 et al., followed by 2M and O3, leads to the conclusion that at international container shipping market there is an objective need for consolidation of operators. However, carriers, cooperating on one or a limited number of routes, don’t interact on other key routes, where new alternative alliances emerge. Consolidation of carriers should not be too comprehensive (to prevent emergence of a dominant player, able to impose its will on a global scale). The presence of national regulatory authorities, linked to certain centers of the world economy, protect the interests of these centers, and thereby contribute to the preservation of competition in global markets.