Following the merger of two largest Chinese state owned shipping companies that was ordered by the Chinese government on August, the amalgamation of Chinese shipping continues with another merger for CMES (China Merchants Energy Shipping) and Sinotrans and CSC group for their operations. The recent merger orders have been part of the reform plan of Chinese government for its state owned shipping sector. As per Drewry consultancy, these mergers might have contagion effect on the existing carrier alliances and further carrier mergers in Asia, damaging industry competition.CMES