Ocean Alliance Agreement
Ocean Alliance is an operational agreement between three major container shipping lines which are Cosco, CMA-CGM, and Evergreen. Cosco is the worlds third-largest shipping line, CMA-CGM and Evergreen come fourth and seventh. This alliance is the worlds largest alliance and the agreement was extended to 2027.
Ocean Alliance extends agreement till 2027
The Ocean Alliance started in 2017 on a 5 years deal, but, this successful alliance was extended for 6 more years until 2027. The extension of the agreement was signed in Hainan, China between the executive chiefs of the three shipping lines.
The extension of the agreement does not only indicate the success of the alliance but also the strong and healthy partnership between these large shipping lines. The agreement that was signed two years ago has been benefited a lot the giant Asian shipping line Cosco and its partners.
The Importance of The Extension of The Agreement
The extension of the agreement will strengthen the alliance and make it more stable and smooth. This alliance has been providing high-quality services and products with comprehensive coverage, high frequency, distinct port pairs, and most of all precise schedules.
This extension will help the three shipping lines stay united and strong so they can cope with the future challenges that this industry will witness. This long cooperation between these large shipping lines will secure the alliances future.
Ocean Alliances Services
The Chinese giant COSCO Container Lines, Hong Kong-based Orient Overseas Container Line (OOCL) and Taiwanese Evergreen Line, stated that starting from April 2019 they will deploy around 330 container vessels with an estimated total carrying capacity of 3.8 million TEUs
The alliance will provide nineteen transpacific services with an estimated 160 port pairs. The services include 12 Asia – West Coast North America services and 7 Asia – East Coast North America and U.S. Gulf services.
The shipping lines would provide six services between Asia and Europe with an estimated 110 port pairs, 4 services between Asia and the Mediterranean with some 165 port pairs. The companies would also offer two Transatlantic services covering 70 port pairs, four Asia – Middle East services calling 70 port pairs, and two Asia – Red Sea services with 35 port pairs.
There are two other major alliances between shipping lines besides ocean alliance. The other two major alliances are 2M between Maersk, MSC, and ZIM and The Alliance between Maersk, MSC, and ZIM. Alongside the Ocean Alliance, these alliances dominate 83% of the global container shipping market anywhere in the world.