Logistics
Trade has become the pilot of economic growth in today’s world, where reportedly the value of exported goods around the world is around 25%. Globalization and trade are interrelated, which shows that over the last hundred years, trade growth has outpaced. The modern world faces concern of a mobility scale that spans regions, nations, and often continents.
The global shipping industry is going through a major transformation. This transformation has led to new strategies as they are in demand in the evolving market. In today’s shifting economic landscape, shipping companies are working on forming alliances to reshape global trade dynamics. Let’s dive into the details of these alliances.
What are Shipping Alliances?
Shipping alliance is basically a commercial agreement between a group of different shipping companies. These companies join hands to provide international maritime transport services. This agreement is made to benefit from competitive prices and wider service coverage.
This partnership expands marketing reach and improves operational economy. According to Alphaliner’s Ranking, the three major alliances, 2M, Ocean Alliance, and THE Alliance, collectively account for a major percentage of the global container market, leaving only 20% for smaller carriers.
How do Shipping Alliances Work?
Shipping alliances involve companies communicating and sharing information on stowage plans, vessel assignment, scheduling, and problem-solving. They differ from other partnerships in not covering joint sales, marketing, pricing, or asset ownership. They discuss fuel regulation, environmental issues, operational efficiencies, engine failures, capacity planning, carrier contributions, and specific compensation.
Impact of Shipping Alliances on Global Market
The shipping industry relies on alliances and vessel-sharing agreements to reduce operating costs and expand their business. Operating costs, including port taxes and bunker prices, account for over 67% of a line’s total. Sharing resources like ships, port facilities, and networks along specific routes is the most effective way for shipping lines to reduce these costs.
Shipping alliances enable carriers to buy mega-ships, expanding their business and impacting the global economy. After cargo ship crises, alliances help large lines rationalize resources and allow smaller lines to enjoy extended service coverage without increasing fleet size.
Global Container Shipping Alliance – 2024 (Feb)
Global Container Shipping Alliance – 2025
Major Global Shipping Alliances
These are the main shipping alliances that are operating now, along with the changes that will occur over the duration of the coming year:
| Major Shipping Alliances 2024/2025 | ||
| Alliance | Members | Details of Alliance |
| Premier Alliance | HMM, ONE & Yang Ming | This will begin in February 2025. The three partners are currently members along with Hapag-Lloyd. After this, MSC will work alone. |
| Gemini Cooperation | Maersk & Hapag Lloyd | January 2025, Maersk will step away from the 2M alliance. |
| 2M | MSC & Maersk | Formed in 2015 to ensure competitive and operations. It comes to an end in 2025. |
| Ocean Alliance | CMA-CGM, Cosco Group, OOCL & Evergreen | Formed in 2017 and renewed for 10 years ending in 2027. |
| The Alliance | Hapag Lloyd, NYK, Yang Ming, MOL, K-Line, HMM | The Alliance was launched in 2017,. Hapag Lloyd will leave in 2025, while HMM, ONE, and Yang Ming will form the Premier Alliance. |
1. Premier Alliance: HMM, ONE and Yang Ming (February 2025)
HMM, Ocean Network Express (ONE), and Yang Ming Marine Transportation have announced plans to collaborate in liner trades under the Premier Alliance, starting in February 2025. The alliance will operate on key East-West routes connecting Asia to the North America West Coast, North America East Coast, Mediterranean, North Europe, and the Middle East.
The Premier Alliance members will also reveal a slot exchange agreement with MSC for nine Asia-Europe services as MSC prepares to operate outside the 2M alliance. The tripartite alliance will offer strong, reliable, and highly dependable end-to-end direct port container services to customers on both the Transpacific and Asia-Europe trades.
2. Gemini Cooperation: Maersk and Hapag Lloyd (January 2025)
Maersk and Hapag-Lloyd have signed a long-term operational collaboration, The Gemini Cooperation, starting in February 2025. The partnership will involve the second and fifth-largest shipping companies globally, with Maersk operating 60% of the total 3.4 million TEU capacity and Hapag-Lloyd managing the remaining 40%.
The Gemini Cooperation will cover the following routes:
- Asia and Northern Europe
- Asia and the Mediterranean
- Asia and the Middle East
- The Middle East to India and Europe
- Asia and the US East Coast
- Asia and the US West Coast
- The Transatlantic
Impact of Gemini Cooperation on other Shipping Alliances:
The largest shipping alliance currently is The Ocean Alliance. It consists of CMA CGM, COSCO Shipping Lines, and Evergreen Marine Corporation. This alliance holds a combined capacity that exceeds 8.3 million TEUs. Hapag-Lloyd has announced its exit from THE Alliance, which includes HMM, Ocean Network Express (ONE), and Yang Ming. The reason behind this departure is to form a new partnership with Maersk called the Gemini Cooperation. This new collaboration will have a combined capacity of approximately 3.4 million TEUs. The Hapag-Lloyd’s exit has led to a decrease in THE Alliance’s capacity of around 3.3 million TEUs. This shift may prompt THE Alliance members, particularly ONE, HMM, and Yang Ming, to seek new alliances to maintain their value in the global shipping market.
3. 2M Alliance: Maersk and MSC (terminating 2025)
The 2M Alliance, formed in 2015 between Maersk and Mediterranean Shipping Co (MSC), aimed to control one-third of the world’s container capacity and have over 4 million TEUs independently. The impact of end of 2M Alliance was:
- The alliance’s discontinuation in January 2023 may signal the beginning of a restructuring of operational contracts, particularly on important east-west trades.
- Freight forwarders may see a fall in shipping rates as both companies compete more directly in the Asia-Europe, Transatlantic, and Transpacific trade routes.
- Customers may also see positive changes in services offered to retain and attract more customers.
- Experts believe that both companies will need to increase their ocean fleet to meet customer demands and ensure smooth cargo transportation.
4. Ocean Alliance: COSCO, OOCL, CMA CGM & Evergreen
The Ocean Alliance, formed in 2017, consists of COSCO Shipping, OOCL, CMA CGM, and Evergreen. It was initially launched for five years, but was extended to ten years in 2019 and a further five years in 2024. The alliance has 330 container ships and an estimated carrying capacity of 3.8m TEUs, including Ever ACE, the largest mega ship. It offers 38 services, including transpacific, Asia-Europe, and Middle East services.
5. The Alliance: Hapag-Lloyd, ONE, and Yang Ming
The Alliance, launched in 2017, combines 3.5 million TEUs, accounting for 25% of global container capacity. It will deploy a fleet of 249 ships to connect 76 ports across Asia, North Europe, North America, Canada, Central America, the Indian Subcontinent, and the Middle East.
In 2019, the alliance optimized port-pair connections for better service quality. In 2020, South Korean HMM joined The Alliance, increasing its capacity by 519,000 TEUs. The Alliance’s global market share increased from 25% to 30%. In September 2024, HMM, Ocean Network Express (ONE), and Yang Ming Marine Transportation announced collaboration in liner trades under the Premier Alliance. Hapag Lloyd will no longer be part of The Alliance due to the Gemini Cooperation between Maersk and Hapag Lloyd in 2025.
6. MSC (The Stand-Alone Service)
MSC has announced its standalone East/West network and plans for 2025, marking an important milestone in the evolution of its global network. MSC has been expanding capacity through a long-term new build program and numerous secondhand acquisitions. With over 850 vessels, the new standalone East/West trade features five trades with 34 loops from Asia to North Europe, the Mediterranean, North America West Coast, North America East Coast, and trans-Atlantic.
Benefits of Shipping Alliances for Shippers and freight forwarders
Shipping alliances are mutual agreements among carriers that offer benefits to shippers and freight forwarders. They can provide better port coverage, and faster transportation services to their clients. They can offer shippers a wider range of options and access to a broader range of routes. This collaboration may help in many freight operations with competitive pricing. Moreover, it also allows more cost-effective shipping solutions. Shipping alliances are a flexible option that benefits all parties involved.
Other Types of Collaborations
Two common agreements of shipping compliance are the following
- Slot Charter Agreement: A SCA involves two shipping lines buying and selling specific slots for a specific period, like Hapag-Lloyd, which operates as a slot charterer on the MSC route from South Africa to Europe.
- Vessel Sharing Agreement: A VSA is a contract between shipping lines to share vessel space on specific trade lanes, with space varying based on individual input. It’s limited to a specific trade lane, while a shipping alliance is global.
Select the Best Option
As new shipping alliances reshape the industry, flexibility and efficiency are more crucial than ever. With major ocean carriers reshuffling alliances, supply chain disruptions may be on the horizon. TEU Global ensures seamless cargo movement with end-to-end logistics solutions, including freight forwarding, customs brokerage, warehousing, and trucking—ensuring seamless cargo movement, optimized costs, and greater adaptability in a rapidly evolving market.
Trust TEU Global to keep your supply chain agile, efficient, and ready for the future.
