Container shipping alliance landscape: Dominant OCEAN Alliance extension leaves THE Alliance stranded

Container shipping alliance landscape Dominant OCEAN Alliance extension leaves THE Alliance stranded - Merchant Navy Info - News

The extension of partnership among OCEAN Alliance partners has set an abp framework for the operation of main container lines in the coming years.

As CMA CGM, COSCO, and its associate OOCL and Evergreen will remain under the OCEAN Alliance umbrella until 2032. Maersk has already disclosed its upcoming partnership with Hapag-Lloyd. Effective February 2025, the members of THE Alliance are in an unfavorable position. Meanwhile, MSC and ZIM have already signed a partnership agreement.

The OCEAN Alliance extension is expected to cement the group’s predominant position as the biggest global carrier alliance. Thus, giving it a notable lead over its rival alliances on both the Transpacific and Asia-Europe routes. In contrast, the Gemini Cooperation of Maersk and Hapag-Lloyd is expected to receive a considerable portion of the market thanks to the strong presence of the two partners in several regions worldwide. Furthermore, the world’s biggest carrier, MSC, can secure the sustainability of its cooperation with the Israeli ocean carrier.

On the other hand, THE Alliance sans Hapag-Lloyd will be the smallest of the four global carrier alliances. It will be extremely weak on the Asia-Europe and Transatlantic routes, where Ocean Network Express (ONE), Yang Ming, and HMM need more capacity and market coverage. it is essential to compete effectively with the rival alliances, according to Linerlytica’s shipping consultants.

Furthermore, the OCEAN Alliance cooperation extension leaves the remaining members of THE Alliance partners abandoned. This reason is they cannot draw one major player from the OCEAN Alliance members to replace Hapag-Lloyd. As a result, if THE Alliance seeks to replace the German shipping line. It must seek a smaller, perhaps niche, container carrier, as the most powerful players already participate in other alliances.

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