An ocean of alliances
It bands the recently formed China COSCO Shipping with Evergreen Line, CMA CGM and OOCL. The alliance involves vessel- and slot-sharing agreements or VSAs. Members of other major alliances -- the G6, CKYHE, and Ocean Three -- will need to form new VSAs with different carriers, creating fresh uncertainty in the shipping industry.
Maersk Line and Mediterranean Shipping Co announced the 10-year 2M Alliance vessel-sharing agreement on the Asia-Europe, trans-Pacific and trans-Atlantic trade lanes as the carriers strove to better utilize capacity in the wake of their failed bid to launch the P3 Network in 2014.
The Transport High Efficiency Alliance was formed by NYK Line, MOL, “K” Line, Hanjin Shipping, Hapag-Lloyd and Yang Ming Line. Possible additional members could be United Arab Shipping Company, which is in discussions with Hapag-Lloyd for a merger, and Hyundai Merchant Marine, which is undergoing a financial restructuring.
It consists of previous Cosco Container Lines, “K” Line, Yang Ming Line, Hanjin Shipping, and Evergreen Line. The CKYHE Alliance will cease to operate in 2017 as a result of consolidation in the container shipping industry. Evergreen Line and China Shipping Container Lines joined the Ocean Alliance in 2016, while “K” Line and Yang Ming Line are joining other alliances. Hanjin went bankrupt.
The G6 Alliance members are APL, Hapag-Lloyd, Hyundai Merchant Marine, MOL, NYK Line and Orient Overseas Container Line. The G6 Alliance has a vessel-sharing agreement that allows container lines to achieve economies of scale and better cope with periods of slack demand. The G6 Alliance will cease operations in 2017 as its members have signed new agreements.