Once the $6.3bn agreement to buy OOCL is approved, Cosco will become the third largest container line in the world. The agreement, announced July 9th, is the latest in a string of consolidations that will see 75% of all container ships in use controlled by the top seven companies. One key factor in Cosco’s interest is the OOCL carrier rating and management practices. As one of the most efficient carriers with a decidedly global awareness it will behoove Cosco to maintain the brand and spend the promised two years working to adopt and incorporate the highlights of the OOCL model into the Cosco practices.
Mergers and acquisitions have been swarming the logistics news pipeline for well over a year as restructuring and low rates force companies to come together and support each other, whether it’s by merging or building strategic partnerships. Interestingly, one of the highlights of a strong freight forwarder is their emphasis on building a strategic network of partnerships with carriers and agents overseas to expand their network of service and add value to the shipments by leveraging those partnerships.
Nelson International has worked diligently to create the same strategic partnerships so our customers know they can move freight on any carrier, to any port. The longevity of our partnerships is paramount when considering new business opportunities in new places. Our customers understand that we have tried and true unity among our overseas partnerships that work with all carriers to secure the best rates and fastest shipping times. By focusing on market changes and watching the mergers that are happening, we have a plan in place before issues arise that can cost our clients time or money.
As more carriers come together, we continue to watch for hidden opportunities to negotiate into stronger buying positions for our customers. And we watch for hidden pitfalls that can cause grief that stems from any reduction in transportation options. Your cargo is safely moved through our tried and true channels to be handed off to only our most trusted allies, while your rates are further protected and ensured by our attention to the market conditions.
If you have questions about how Nelson International can help you navigate through the myriad of changes happening, give our customer service team a call. We are on hand to ship your cargo and to explain and advise on all issues currently facing shippers. We look forward to hearing from and working with you during this time.