Thursday, November 19, 2009

Shipping Line Alliances are to Cooperate on Trans-Pacific Routes

Losses Force Closer Ties
Shipping News Feature

WORLDWIDE - The New World Alliance (TNWA) carriers - which includes APL, Hyundai Merchant Marine (HMM) and Mitsui OSK Lines (MOL) - today announced service and capacity changes in cooperation with the Grand Alliance (GA) lines, whose members are Hapag-Lloyd, Nippon Yusen Kaisha (NYK), and Orient Overseas Container Line (OOCL).

From December 2nd 2009, the GA will jointly operate the New York Express (NYX) with TNWA. TNWA will provide six ships and the GA three vessels. APL, HMM and MOL will each withdraw one ship from the service.

In addition to a recently added Yokohama call, the NYX port coverage will be enhanced with an additional call at Shekou. The revised port rotation is Shanghai, Ningbo, Shekou, Yantian, Hong Kong, Kaohsiung, Panama Canal, Manzanillo, New York, Norfolk, Savannah, Jacksonville, Miami, Manzanillo, Panama Canal, Balboa, Yokohama and Pusan.

The NYX service will continue to be an essential part of the TNWA’s Asia-US East Coast via the Panama Canal service offerings as well as the APX (Atlantic Pacific Express).

The changes made will reduce trade capacity by approximately 4,000 TEU. The reduction marks a new standard of coordination between the big shipping lines, whose financial losses due to the slump in rates has been widely reported on over the last few weeks.

It remains to be seen whether this new deal will result in a further consolidation in the shipping alliance system.