Ship Angel blog

Preparing for Changes in Ocean Container Alliances

Written by Graham Parker | Dec 19, 2024 5:31:03 PM

The shipping industry is undergoing big changes in 2025 as ocean container alliances restructure and realign. The Federal Maritime Commission (FMC) defines an alliance as an agreement between ocean common carriers that allows them to:

  • Charter and exchange space on each other's vessels
  • Coordinate and cooperate on transportation services and operations

As alliances restructure and realign, shippers must adapt by optimizing their supply chains and maintaining constant vigilance on rates, route options, and alternative transportation modes.

These ocean container alliance changes include:

  • Hapag-Lloyd and Maersk will begin to operate as Gemini Cooperation. The Maersk and Hapag-Lloyd partnership will focus on major global routes, especially across the Asia-Europe and Trans-Pacific lanes, and utilize a hub-and-spoke network.
  • A new alliance, The Premier Alliance, will include ONE (Ocean Network Express), Yang Ming, and HMM (Hyundai Merchant Marine). The Alliance will focus on high-demand routes, especially Asia-Europe and Asia-Middle East.
  • The dissolution of the 2M alliance - MSC and Maersk will go their separate ways.
  • MSC is planning a comprehensive standalone service network. However, MSC will continue collaborating through a slot-sharing agreement with the Premier Alliance, covering nine Asia-Europe trade routes.
  • ZIM has announced a three-year partnership with MSC focusing on transpacific trade. This collaboration will cover routes between Asia and the US East and Gulf coasts.

The only Alliance not changing is the Ocean Alliance which consists of CMA CGM, COSCO Group, OOCL, and Evergreen and will continue until 2032.

While these changes may unlock new opportunities, they may also bring challenges for shippers.

 

Rates and Service Schedules

The restructuring of alliances may lead to changes in service schedules, port rotations, and available capacity. Disruptions may occur as carriers adjust their networks, potentially impacting transit times and freight rates. Shippers will need to understand these changes and prepare supply chains in advance to respond in a flexible and agile way.

Long-term contracts should include provisions for adjustments based on market changes, while spot market options provide additional capacity if needed, during periods of volatility.

While ensuring supply chains are agile and flexible to respond to possible disruptions, shippers need to also determine if any changes in transit times or port calls will harm the supply chain.

Also, shippers need to identify what trade lanes are most important and determine if there is an over-reliance on a specific alliance or carrier. If so, the use of multiple carriers across the different alliances may be needed to mitigate risk and improve bargaining power. In addition, create partnerships with carriers outside alliances to ensure greater flexibility.

 

Value-Added Services

In addition to core transportation services, shippers should look for value-added services that ocean container alliances and carriers may provide.

Such as:

  • End-to-End Supply Chain Solutions: Integrated services such as warehousing, customs brokerage, and inland transportation.
  • Enhanced Visibility: Advanced tracking tools and real-time updates on cargo movement.
  • Sustainability Initiatives: Partnerships with carriers offering low-carbon shipping options or other sustainability practices align with environmental goals.
  • Digital Platforms: Online platforms that simplify booking, documentation, and communications with carriers.

 

Technology

Technology will play an important role in helping shippers adapt to changes in ocean container alliances. Advanced data analytics and supply chain visibility tools can provide real-time insights into market conditions, carrier performance, and shipment status. By leveraging these tools, shippers can make informed decisions and respond quickly to disruptions.

 

Regulatory Updates

Finally, there will likely be an increase in regulatory scrutiny of ocean container alliances as governments and trade organizations assess their impact on competition and market fairness. Shippers should stay informed about these developments, as changes in regulations could influence alliance structures, service offerings, and pricing models.

 

About Ship Angel

Throughout these evaluations to determine who to partner with, shippers will need to monitor rates to determine the best options, including transportation mode, to move cargo.

Ship Angel is a cutting-edge rate management platform for BCO shippers, offering innovative solutions in rate management, amendment guard, invoice auditing, and sustainability reporting. Powered by AI, Ship Angel helps shippers manage rates efficiently, ensure contract accuracy, and optimize cost savings. With a commitment to transparency, Ship Angel works across industries to help companies avoid costly disruptions and stay ahead in a rapidly evolving global trade environment.

 

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