Key Factors Analysis of Strategic Alliances in Container Liner Shipping Industry

International container shipping industry experiences important innovation after the 1980s. This is caused by the progress of Asian shipping to stay abreast of the economic development and the authorization of the revised US Shipping Act in 1984. Before the act, container shipping industry is exempt from antitrust law. The act is intended to loosen regulation and promote competition. Consequently, container shipping industry previously dominated by developed countries started to meet large change in market structure and liner shipping conferences with a history of more than a century begin to fall down. Competition becomes more intensified worldwide and many traditional shipping companies are forced to exit market. In such a condition, global strategic alliances emerges rapidly for shipping Abstract: Strategic alliances mean the collaboration between firms which look for a synergy effect that each member expects the benefits from the formation would be much more than those from individual effort. Plenty of past studies already reveal theories and considerations for joining the alliance in container shipping industry. Through reviewing related journal and annual report of top 20 container shipping carriers, this study aims to provide insight and important motives for alliance formation. This paper also reveal the executive’s viewpoint regarding to current container shipping alliances, especially in Asia/Europe route. Their comments provide key managerial insight as well as motives for collaboration among major shipping carriers. Furthermore, this paper empirically investigates these motives from service quality perspectives by using quality function deployment. Through the MCDM analysis as well as consulting with senior shipping experts, key factors for forming strategic alliance are identified and the managerial implications are revealed as decision support tool for shipping policy makers, port managers and shipping practitioners.