Ocean Alliance – Eleven of the world’s largest container shipping lines are coming together into three new alliances.

Eleven of the world’s largest container shipping lines are coming together into three new alliances.

In just under two weeks, the ocean freight and freight forwarding industry will undergo a transformation in the form of 3 new shipping alliances.

Come April 2017, the song of shipping carriers will come to a halt in their roundabout of musical chairs.

THE Alliance, Ocean Alliance, and 2M will set sail with new members and strategic alliances. The new formation will look starkly different from the previous alliance groupings. That’s thanks to an unprecedented number of mergers and acquisitions in 2016.

It is anticipated that ocean freight rates will certainly increase over the longer term (1-2 years).
In the short term , until carriers and their respective alliance executive teams review the immediate task of re-shaping their vessel and port schedules , we suspect rates will stabilize at current levels.

In this news feed , we’ll look at how the world’s largest shipping lines will reorganize themselves from the current four alliances to three.

New shipping alliances: What to expect?
Previous shipping alliances:

2M Alliance: Maersk and MSC
Ocean Three Alliance: CMA CGM, UASC, China Shipping
G6 Alliance: NYK Line, OOCL, APL, MOL, Hapag-Lloyd, HMM
CKYHE Alliance: K Line, COSCO, Hanjin Shipping, Evergreen, Yang Ming
New shipping alliances (we recommend giving customers actual names of each shipping lines so they can undertake their own research ):

2M Alliance: Maersk, MSC + HMM
THE Alliance: NYK, MOL, K Line, Yang Ming, Hapag-Lloyd (with UASC)
Ocean Alliance: CMA CGM, Evergreen, OOCL, COSCO Shipping
Breakdown of THE Alliance:

Breakdown of Ocean Alliance:

These three alliances represent 77.2% of global container capacity and a whopping 96% overall. Ocean Alliance offers the most services, with some 40 loops. THE Alliance follows with 32 services and 2M with 25. Among the changes, THE Alliance and Ocean Alliance will run 11 weekly Asia-Australia / NZ routes. 2M has also increased its services on this route from five to six. That’s mainly to cater to the additional slots under their agreement with HMM and Maersk’s takeover of Hamburg Süd.

According to a recent report Ocean Alliance’s gets its lead from its seven Asia-Middle East and -Red Sea services. In comparison, THE Alliance offers only one such service and 2M none.
With regards to the Asia-Australia East Coast routes, Ocean Alliance has 13 services, THE Alliance 11 and 2M only five.

More recently, Hapag-Lloyd and UASC postponed their final merger date as a result of unexpected delays. The merger will now take place at the end of May as opposed to the end of March, which would have been in time for the new alliances reshuffle. However, this is unexpected to affect the start date of THE Alliance. It will set sail on April 1st, 2017 as planned.

Lack of information on new routes
For the Ocean Alliance, information regarding actual schedules and what specific vessels will form part of the service is not yet available. According to its brochure, ‘transit times are provided for information and example purpose and are non-contractual’.

For THE Alliance, sailing information is available but limited to a few services. Port and terminal information still may change. The group has yet to release details of vessels and their operations.

We shall continue to monitor this situation and advise of key changes in the Australian Trade.
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