The encyclopedia · Strategy & Leadership · Strategic decision · 2014-2025
Maersk and MSC shared one fleet of 185 ships to fill them all
In 2014 Maersk and MSC formed 2M to share ship capacity, running bigger vessels neither could fill alone.
Maersk Line · MSC
the move
Container ships are dramatically cheaper per box the bigger they get, but a giant ship is only efficient if it sails full, and no single carrier on a lane has enough volume to fill 185 of them.
The move was to share the fleet. In 2014 Maersk Line and MSC signed a 10-year vessel-sharing agreement, the 2M, covering the three big East-West lanes with about 185 vessels on 21 strings, each line selling space on the other's ships.
This lets both run much larger vessels than either could fill on its own, cutting fuel and slot cost per container. The co-operation was a pure capacity-sharing arrangement rather than a single merged network, which kept their market power in check.
why it works
- Economies of scale in shipping only pay off if the ship is full, so sharing capacity is how a line gets the scale without the volume.
- Selling slots on a partner's ships lets each line offer more sailings and coverage than it could alone.
- Fully-loaded larger ships burn less fuel per box, so capacity sharing also cut emissions.
what transfers
When an asset is only economical at a scale no single firm can fill, share it with a competitor; cooperation on capacity can beat a solo arms race.
what came after
The 2M VSA was approved by the US Federal Maritime Commission in 2014 and ran until 2025, when it dissolved as Maersk and MSC reorganized into different alliances; it showed how carrier consortia let lines run far larger vessels than they could fill and cut slot cost per container.
references
- MSC agree 10 year Vessel Sharing Agreement with Maersk Line
- FMC gives approval to 2M vessel sharing agreement between Maersk and MSC
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