The Future of Ocean Carrier Alliances: Shifting Strategies in Global Shipping

Recent Developments in Carrier Alliances

Two major announcements have recently shaken up the carrier alliance structure:

• In January, Hapag-Lloyd and Maersk revealed plans for the Gemini Cooperation, set to begin in February 2025. This partnership will focus on major east-west trades with a combined capacity of 3.4 million TEUs.
• In February, the Ocean Alliance (consisting of CMA CGM, COSCO, Evergreen, and OOCL) announced an extension of their partnership through March 2032. Together, these carriers control about 29.6% of global container capacity.

These moves have largely settled the alliance picture for six of the world's largest container carriers. However, questions remain about the strategies of other major players like MSC, the remaining members of THE Alliance, and currently independent carriers.

Potential Strategies for Remaining Carriers

As the alliance landscape shifts, several options are emerging for carriers not involved in the recent announcements:

1. Independent Operations

Some larger carriers, such as MSC (the world's largest with about 20% of global container capacity), may choose to operate independently. This approach could involve using their substantial capacity while selectively engaging in vessel sharing agreements (VSAs) on specific routes to optimize utilization.

2. Reshaping THE Alliance

With Hapag-Lloyd's departure from THE Alliance in 2025, the remaining members (ONE, Yang Ming, and HMM) face a significant capacity gap. They could explore options such as:

• Adding currently independent carriers like ZIM or Wan Hai to the alliance
• Disbanding THE Alliance and seeking partnerships with Gemini, Ocean Alliance, or MSC
• Adopting an independent strategy focused on VSAs rather than full alliance membership

3. Vessel Sharing Agreements (VSAs)

VSAs are gaining traction as a flexible alternative to full alliances. These agreements allow carriers to:

• Boost service coverage and operational efficiency on specific routes
• Maintain greater operational agility compared to long-term alliance commitments
• Optimize vessel utilization and reduce costs in a targeted manner

Implications for Shippers and Freight Forwarders

As the carrier landscape evolves, shippers and freight forwarders can expect:

• A greater variety of service options as carriers adjust their networks
• Potential changes in capacity and scheduling on certain routes
• The need for a diverse portfolio of transportation providers to ensure supply chain resilience

How FreightAmigo Can Help Navigate These Changes

At FreightAmigo, we understand that these industry shifts can create uncertainty for our clients. Our Digital Logistics Platform is designed to help freight forwarders and shippers adapt to the changing carrier landscape:

1. Comprehensive Carrier Comparisons

Our platform allows you to compare door-to-door freight quotes across multiple carriers and alliances for international courier, airfreight, sea freight, rail freight, and trucking solutions. This visibility helps you find the best options as carrier networks evolve.

2. Real-Time Shipment Tracking

With connections to over 1000 airlines and shipping lines, we provide up-to-the-minute tracking information. This visibility is crucial as carrier alliances and routes may change.

3. Simplified Customs and Documentation

Our one-stop solution for customs clearance, cargo insurance, and trade finance streamlines your operations, regardless of which carriers or alliances you're working with.

4. Automated Document Management

As carrier partnerships shift, staying on top of documentation becomes even more critical. Our automated shipment document tools help ensure compliance and efficiency.

5. Expert Support

Our 24/7 logistics expert support team is available to help you navigate any challenges or questions arising from changes in the carrier alliance landscape.

Conclusion

The ocean carrier alliance landscape is in flux, with major players making strategic moves that will shape the industry for years to come. While these changes may create some uncertainty, they also present opportunities for shippers and freight forwarders to optimize their supply chains.

By leveraging FreightAmigo's Digital Logistics Platform, you can stay ahead of these industry shifts, ensuring you always have access to the best shipping options, real-time information, and expert support. As the logistics world continues to evolve, we're committed to providing the tools and insights you need to thrive in this dynamic environment.

Stay tuned to our blog for further updates on carrier alliances and other important developments in the world of global logistics. And remember, whether you're adapting to new alliance structures or simply looking to streamline your shipping processes, FreightAmigo is here to help you navigate the complexities of international freight with confidence.