CMA CGM, COSCO Container Lines, Evergreen Line and Orient Overseas Container Line have announced the signing of a Memorandum of Understanding to form a new Alliance. The new alliance is expected to enable each of the parties to offer competitive products and comprehensive service networks covering the Asia-Europe, Asia-Mediterranean, Asia-Red Sea, Asia-Middle East, Trans-Pacific, Asia-North America East Coast, and Trans-Atlantic trades.
In a joint statement, signing members said, “This new partnership will allow each of its members to bring significantly improved services to its respective customers.” Adding, “Shippers will have an attractive selection of frequent departures and direct calls to meet their supply chain needs, including access to a vast network with the largest number of sailings and port rotations connecting markets in Asia, Europe and the United States.”
Initially the deployment is expected to cover more than 40 services globally, with a fleet of more than 350 containerships, mostly connected with Asia, including about 20 services each in the US and Europe related trades.
Subject to regulatory approvals of competent authorities, the new Alliance plans to begin operations in April 2017. The initial period of the Alliance is expected to be five years.
Upon signing the MOU, Andy Tung, CEO of Orient Overseas Container Line remarked, “The extensive network and port coverage of the new alliance will offer our customers a wide range of choices and highly competitive services for their supply chains. The new alliance will also be a platform for our ongoing growth as well as improve our cost and efficiency”.
Further details about OCEAN Alliance and the transition plans from the four member lines in their current alliances are due to be communicated to stakeholders and the market in due course.
Source: CMA CGM, COSCO Container Lines, Evergreen Marine Corp., Orient Overseas Container Line