MICHAEL BACHMANN

Current Vessel Sharing Agreements: What You Need to Know

Vessel sharing agreements (VSAs) have become an increasingly popular way for shipping lines to optimize their operations and reduce costs. In a VSA, two or more shipping lines agree to share space on their ships, allowing them to optimize vessel utilization and reduce the number of empty containers on their voyages. This can lead to lower costs for both the shipping lines and their customers.

VSAs have been around for decades, but the current shipping landscape has led to a surge in their popularity. The COVID-19 pandemic has disrupted global trade and led to a reduction in demand for shipping services, which has put pressure on shipping lines to cut costs. Additionally, the expanding alliance networks among shipping lines have made VSAs a necessary tool for those who want to stay competitive.

Let`s take a look at some of the current VSAs that have been recently announced:

2M Alliance

The 2M Alliance is a partnership between Maersk and Mediterranean Shipping Company (MSC) that was formed in 2015. The alliance has recently announced that it will expand its coverage to include new services between Asia and Europe, as well as expanded services between Asia and North America.

One of the goals of the 2M Alliance is to increase efficiency and reduce costs by optimizing vessel capacity and sharing resources. The alliance also allows the two companies to jointly negotiate with ports and other service providers, which can lead to better rates for customers.

THE Alliance

THE Alliance is a partnership between Hapag-Lloyd, Ocean Network Express (ONE), and Yang Ming that was formed in 2017. The alliance has recently announced that it will expand its services to include new routes between Asia and the Middle East, as well as between Asia and the US West Coast.

Like the 2M Alliance, THE Alliance aims to increase efficiency and reduce costs by sharing resources and optimizing vessel capacity. The alliance also allows the three companies to jointly negotiate with ports and other service providers, which can lead to better rates for customers.

Ocean Alliance

The Ocean Alliance is a partnership between CMA CGM, COSCO Shipping, Evergreen Line, and OOCL that was formed in 2017. The alliance has recently announced that it will expand its services to include new routes between Asia and the US East Coast, as well as between Asia and the Middle East.

The Ocean Alliance aims to increase efficiency and reduce costs by sharing resources and optimizing vessel capacity. The alliance also allows the four companies to jointly negotiate with ports and other service providers, which can lead to better rates for customers.

Conclusion

Vessel sharing agreements have become an essential tool for shipping lines looking to stay competitive in today`s challenging market. By sharing resources and optimizing vessel capacity, shipping lines can reduce costs and provide better rates for customers. As the shipping industry continues to evolve, we can expect to see more VSAs announced in the coming years.