Thursday, July 19, 2018

2M Container Shipping Alliance Partners Join Services with Another Freight Carrier

Rationalising of Capacity as Big Two Share and Extend Popular Cargo Loops
Shipping News Feature
ASIA – US – In a continuation of the recent policy of rationalising container shipping services and forming strategic co-operations, Mediterranean Shipping Company (MSC), along with 2M alliance partner Maersk Line, have announce a new strategic cooperation with Israeli shipping line, ZIM to improve freight services for shippers moving cargo between Asia and the US East Coast (USEC).

At present, MSC and Maersk Line operate five loops on the Asia-USEC trade, while ZIM operates two loops on parallel routes. As of early September 2018, Maersk Line and MSC will contribute four of their operated loops to a combined operation of five loops with ZIM between Asia and USEC. ZIM will operate one loop. The parties will swap slots on all five loops of the new cooperation.

The new arrangements will improve MSC’s products across these regions and unveil new opportunities for shippers. Southeast Asian exporters will benefit from a new direct service between Laem Chabang port, Thailand, and USEC ports as far as New York. The revised network will include calls at Colombo to facilitate shipping opportunities for cargo from nearby India, Pakistan and Bangladesh.

The new cooperation offers ZIM’s customers a more comprehensive product portfolio, with a wider range of direct calls in Asia and the US and faster transit time. In addition, it is expected to generate cost efficiencies for ZIM. Eli Glickman, President and CEO of ZIM, said:

“We are pleased to enter into this strategic operational cooperation with the 2M Alliance. The agreement will significantly improve our services on this important trade, where we remain a major player as part of our strategy. It is a vote of confidence by the two largest players in the industry, acknowledging ZIM’s capabilities, reliability and strength. Furthermore, it will enable ZIM to achieve operational efficiencies and ensure our ability to maintain a leading position on the trade.

“We will continue to be independent, building on our personal links with our customers, for which we are so well known in addition to our ongoing technological initiatives such as our successful blockchain project.

“We will continue to service all trades in our current network - with even better service links and transit times. Our customers will continue to benefit from ZIM’s exceptional level of service, now with an improved product.”

The cooperation is scheduled to begin in early September 2018, subject to all required regulatory approvals. The initial term of the cooperation is four years with an option to extend it to seven years in total. The parties expect to disclose more information about network changes and schedules on the trade as soon as possible.