Eli Glickman, President and CEO of ziM, hailed the agreement as a “Game-Changer” for the company and its customers. The most recent agreement is the second cooperation agreement announced by container shipping companies, following the agreement to share navigation capacity on the east coast of Asia in North America, signed in July 2018. The “THE” alliance is another very important alliance between shipowners. It was established in 2017 and brought together companies such as Hapag-Lloyd, ONE and Yang Ming. The alliance accounts for 16% of the world`s container capacity. Maritime alliances can help airlines achieve low prices and broad service coverage through economies of scale and scale. The high fixed cost structure of shipping companies is one of the main arguments for cooperation between shipping companies. A weekly line service between different ports requires investment in a number of vessels. They will sail independently of their occupancy rates. Cooperation between airlines, for example. B through a Ship Sharing Agreement (ASV), can reduce this risk and increase utilization. The CMF demanded agreements on the sharing of ocean and 2M vessels in order to remove a similar language as a precondition for authorisation from the authorities.
Instead, airlines must negotiate most fares and services separately. The Ocean Alliance can negotiate with the naval terminals that agree, he said. In recent years, ship-sharing agreements (VSAs) have multiplied as airlines strive to streamline capacity following massive losses caused by excess space on many global trade routes. The emergence of mega-container ships with a capacity of up to 18,000 equivalent 20-foot (TEU) boxes per trip has exacerbated the problem of overcapacity. HMM will join THE Alliance on April 1 next year, after SlotCharter`s agreement with the 2M Alliance expires. “We are very proud to work with the two largest players in the sector and to develop our cooperation with the 2M Alliance. The new strategic agreement means faster and more efficient service, with better geographic coverage and extensive direct calls for our customers, in line with our vision to provide quality service. We will greatly increase our ability to offer the best of both worlds: high-level online coverage combined with our outstanding customer service and personal rating. The agreement is a disruptive factor and I am confident that it will support the growth and profitability of ZIM. Maritime industry organizations and the Department of Justice expressed concern about the provision that would have granted antitrust immunity to the agreement.
In a December 7 speech to the North Atlantic Ports Association, CMF Commissioner William P. Doyle said he had “serious concerns” about the common purchasing power and contracting power of airlines. “It would not be fair to give shipping companies the opportunity to award contracts and obtain services together, when domestic providers cannot negotiate together,” he said. The Chief Operating Officer of A.P. Moller – Maersk, Séren Toft, made a more prosaic assessment: “After successfully implementing our strategic cooperation, we are very pleased to extend the partnership with ZIM to other regions.