By What is an alliance in liner shipping?
In simple terms, a Shipping Alliance (also known as Ocean Alliance) is a group of ocean carriers joining forces to create a cooperative agreement forming a strategic alliance covering various trade routes through cooperation between its members on a global level.
Which shipping lines are in the alliance?
Shipping Alliances: 2M, Ocean Alliance & THE Alliance
- Benefits of shipping alliances.
- Overview: Three major shipping alliances.
- 2M Alliance: Maersk and MSC.
- Ocean Alliance: COSCO, OOCL, CMA CGM, and Evergreen.
- THE Alliance: Hapag-Lloyd, ONE, & Yang Ming.
- How do shipping alliances work?
- Other types of liner collaboration.
What are the new shipping alliances?
Heavyweights APM-Maersk and Mediterranean Shipping Company, or MSC, joined forces as part of the 2M pact. CMA CGM, Cosco and Evergreen formed Ocean Alliance, while another set of players including Hapag Lloyd, ONE and Yang Ming created THE alliance.
What are the main ocean carrier alliances?
Collectively, the 2M Alliance (Maersk and MSC), THE Alliance (Hapag Lloyd, ONE, Hyundai Merchant Marine and Yang Ming) and the Ocean Alliance (COSCO, CMA CGM and Evergreen) deploy 3,126 vessels with over 20 million TEUs of capacity.
Is Zim part of any alliance?
ZIM Integrated Shipping Services and the members of the 2M Alliance, Maersk Line and Mediterranean Shipping Company (MSC), today announced a new strateg… Starting early September, 2018, the parties will operate together five loops between Asia and the US East Coast.
Why do container shipping lines combine in alliances?
Through alliances, container-ship operators will be able to cut operational costs and boost efficiencies via vessel sharing arrangements. Compared to individual operators, partners in alliances will have the capacity to offer better service through combined networks.
What alliance is OOCL in?
2020 Ocean Alliance products
OOCL – OOCL presents 2020 Ocean Alliance products.
What are ocean alliances?
Ocean alliances are groups of ocean freight carriers who agree to pool their respective fleets of vessels, in order to extend their geographic coverage and service offerings.
How many ocean alliances are there?
three ocean alliances
Currently, there are three ocean alliances comprised of carriers teaming up to provide global solutions on shared resources. These are 2M, The Ocean Alliance and THE Alliance, respectively. These three alliances were formed in 2017 among eight of the world’s largest carriers.
What are the impacts of container shipping?
The arrival of containers and intermodalism revolutionized the shipping industry. Containers could be efficiently stacked, allowing more and more goods to be transported across the seas. Labor costs were dramatically lowered and, since containers were sealed, theft was reduced.
What is shipping consortium?
A group of shipowners may agree to offer their ships to an organisation formed by the members of the group for the organisation (the “consortium”) to operate. “Shipping pools” are one form of consortia, generally operating in the tramp shipping, bulk trades.
How many oceans are in the alliance?
Three ocean alliances
Three ocean alliances exist as of May 2018: Alliances are pragmatic arrangements, so their compositions change every few years. For more details about each alliance, see “Guide to Ocean Alliances” on Flexport’s blog.
Are there global alliances in the liner industry?
These formations – Grand Alliance, New World Alliance and CKYH Alliance – are compared with alternative forms of collaboration in the liner shipping industry. The analysis of alliance announcements which are related to operational and strategic changes indicates that the “global alliances” cannot be regarded as closed corporate-like entities.
What are the benefits of a shipping Alliance?
Shipping alliances can help carriers facilitate low prices and broad service coverage through economies of scale and economies of scope. The high fixed-cost structure of shipping lines is one of the main arguments for shipping lines to collaborate. A weekly liner service between different ports requires investment in a set of ships.
How many container ships are in the Ocean Alliance?
The Ocean Alliance includes 330 container ships and an estimated carrying capacity of 3.8m TEUs. It offers a total of 38 different services including 19 transpacific services, 11 services between Asia and Europe (+the Mediterranean), and 4 services between Asia and the Middle East. THE Alliance: Hapag-Lloyd, ONE, & Yang Ming
Who are the top 20 liner shipping companies?
Section 5 presents an analysis of the collaborative agreements of the top 20 liner shipping companies world-wide. The analysis takes into account geographic coverage, market share and organization of offered services. The section also discusses trends and developments in the formation, structure and conduct of liner shipping alliances.