Page 11: of Maritime Logistics Professional Magazine (Jan/Feb 2017)

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BEGINNING ON OR ABOUT APRIL 1, 2017, THERE WILL BE THREE MA-

JOR OCEAN CARRIER ALLIANCES. THIS NEW GENERATION OF ALLI-

ANCES RECEIVED WORLDWIDE REGULATORY APPROVAL BUT WILL

DELAY IMPLEMENTATION UNTIL APRIL. IN THE UNITED STATES, THE

NEW ALLIANCES ALL RECEIVED REGULATORY APPROVAL IN 2016.

announcements was a rapid succession of expanded and pro- Third Generation of Alliances posed alliances. Beginning on or about April 1, 2017, there will be three ma-

In September 2013, CMA CGM announced it was forming jor ocean carrier alliances. This new generation of alliances

The Ocean Three Alliance with United Arab Shipping Com- received worldwide regulatory approval but will delay imple- pany (UASC) and China Shipping Container Line (CSCL). In mentation until April. In the United States, the new alliances

April 2014, The G6 Alliance expanded services into the Asia- all received regulatory approval in 2016. The three major

U.S. West Coast and trans-Atlantic routes. And then, in Febru- ocean carrier alliances will be: ary of 2014, the CKYH Alliance announced that Evergreen Line would join the network, thereby making it the CKYHE Alliance. The 2M Alliance will comprise Maersk Line (with Ham- burg Süd) and Mediterranean Shipping Company (MSC).

Mergers, Acquisitions, Bankruptcy & New Alliances

The Ocean Alliance will comprise CMA CGM (with

Currently, in theory there are four major alliances that in short

APL), China COSCO Shipping (the new company formed order will be reduced to three. The ocean carriers intend to honor through the merger of COSCO and CSCL), Orient Over- all contracts in place under the four alliances until April 1, 2017. seas Container Line (OOCL) Line, and Evergreen Line.

The four major alliances as of January 2017 are as follows:

THE Alliance will comprise Hapag Lloyd (with UASC),

Mitsui OSK Lines (MOL) Ltd., Nippon Yusen Kaisha 2M Alliance – consisting of Maersk Line and Mediter- (NYK) Lines, Kawasaki Kisen Kaisha, Ltd. (K Line), ranean Shipping Company (MSC). In December of 2016

Yang Ming Ltd. It is important to note that the container

Maersk announced that it would purchase Hamburg Süd. business units of each Japanese carrier (MOL, NYK, K-

Earlier in the same month 2M announced it had reached a

Line) will be merged into a single company by mid-2017. strategic cooperation agreement with HMM.

G6 Alliance – consisting of APL Co. Pte Ltd., Hapag

Post-Hanjin Bankruptcy

Lloyd, Hyundai Merchant Marine (HMM) Co. Ltd., Mit-

The Hanjin bankruptcy of 2016 was a complete disaster – sui OSK Lines (MOL) Ltd., Nippon Yusen Kaisha (NYK) stranding more than $14 billion worth of cargo at sea. I urge

Lines, and Orient Overseas Container Line (OOCL) Line. shippers and carriers to work with each other on ways to pro-

Ocean Three Alliance member CMA CGM completed vide safeguards. This can be achieved any number of ways the purchase of APL in September 2016. Hapag Lloyd is such as insurance contracts secured by an alliance, bonding or expected to complete the purchase of Ocean Three Alli- other