Who Will Thrive and Who Will Struggle in Next Year's Major Global Liner Realignment?
2 months ago
Who Will Thrive and Who Will Struggle in Next Year's Major Global Liner Realignment?
As the dust settles from the recent major liner announcements in anticipation of February's alliance reshuffles, analysts are pointing out that freight buyers stand to benefit significantly.
Starting next February, THE Alliance will evolve into the Premier Alliance, featuring Ocean Network Express (ONE), HMM, and Yang Ming Marine Transportation as its core partners. Mediterranean Shipping Co. (MSC) will step in to cover gaps on the Asia-Europe routes.
From the end of January, MSC will exit its 2M vessel-sharing agreement with Maersk to operate more independently. Germany’s Hapag-Lloyd will leave THE Alliance to join Maersk in the newly formed Gemini Cooperation.
MSC has revealed its standalone service plans, which will involve five east-west trades and 34 loops. Additionally, MSC will partner with the Asian trio for Asia-Europe routes and has secured a three-year cooperation agreement with Israeli carrier ZIM for routes from Asia to the US East and Gulf coasts.
For shippers, this reshuffling seems to promise a broader range of options. Ocean Alliance comprising CMA CGM, COSCO, Evergreen, and OOCL will continue its vessel-sharing agreement until March 2032.
Peter Sand, chief shipping analyst at Xeneta, noted that European customers might benefit from enhanced offerings under the Premier Alliance, given MSC’s larger fleet and capacity. Similarly, Lars Jensen of Vespucci Maritime highlighted that the alliance shake-up is expected to increase network variety in the market.
Meanwhile, the US Federal Maritime Commission (FMC) has approved the formation of Gemini Cooperation between Maersk and Hapag-Lloyd but has expressed concerns about potential anti-competitive effects. FMC Chairman Daniel Maffei has stated that while the commission cannot halt the agreement, it will closely monitor its impact on US stakeholders.
In terms of service volume to the US, Gemini Cooperation’s offerings are relatively modest compared to other alliances like Ocean Alliance.
Maersk and Hapag-Lloyd will announce their complete network plans next month. The new network will feature between 27 and 29 mainliner services, supported by 30 intra-regional shuttle services and between 300 and 340 vessels. Maersk CEO Vincent Clerc affirmed that the redesigned network aims to set a new standard for reliability in the industry, with a target schedule reliability exceeding 90%.
Source: Splash247