Asia’s new shipping alliances bring new dynamics to global trade

The structure of global container shipping alliances has undergone a historic transformation this February, marking one of the biggest realignments the industry has ever seen.

The long-standing 2M alliance between MSC and Maersk has ended, leading to a new four-alliance structure that is set to reshape global trade routes. Previously, major shipping lines operated within three alliances: Ocean, THE Alliance (THEA), and 2M. Now, the landscape has expanded to four groups: Ocean, Premier, Gemini, and MSC.

Four major shipping groups replace the old structure

With the dissolution of 2M, MSC has chosen to operate independently as the world’s largest standalone carrier, while Maersk has formed a new alliance with Hapag-Lloyd under the name Gemini Cooperation.

This shift led Hapag-Lloyd to exit THE Alliance, which has since been rebranded as Premier Alliance, consisting of Ocean Network Express (ONE), Yang Ming, and HMM. Meanwhile, the Ocean Alliance, made up of CMA CGM, COSCO, and Evergreen, remains largely unchanged.

Additionally, while MSC and Premier members will cooperate on select routes, they have not entered into a formal alliance. Individual carriers will also continue forming vessel-sharing agreements (VSA) outside their primary alliances, ensuring flexibility in servicing different trade routes.

A shift in network strategies: hub-and-spoke vs direct services

The structural changes bring with them significant strategic differences between the alliances. Gemini Cooperation has opted for a hub-and-spoke model, where large ships call at major hub ports, and smaller feeder vessels distribute cargo to regional ports. This prioritises reliability over direct port coverage. In contrast, MSC’s independent network focuses on maximising direct port-to-port coverage, offering shippers a vast number of direct service options.

For Ocean and Premier, the new structure does not bring major changes. While Ocean Alliance maintains its existing service design, it has introduced an additional Far East–Europe service and included Yangpu, China, in two transpacific routes. Meanwhile, Premier maintains most of THE Alliance’s previous network, compensating for Hapag-Lloyd’s departure by securing slot-sharing agreements with MSC on select routes.

Challenges in comparing alliances

As these new alliances take shape, comparing their market strengths will become increasingly complex. Unlike in the past, each alliance now operates with different geographic scopes and structural strategies.

Gemini’s in-alliance shuttle services differ from traditional feeder networks, impacting how alliance capacity is measured and means that overall fleet capacity is no longer a direct indicator of an alliance’s market power.

Regardless of how well these new networks perform, the transition period is expected to cause disruptions in vessel availability, with short-term inefficiencies and gaps in coverage.

This tightening of vessel supply is already affecting the charter market, with carriers securing ships at record-high rates, suggesting that freight rates may fluctuate in the coming months, as alliances stabilise their operations.

As the container shipping industry enters a new phase of competition and service differentiation Logicall can provide shippers with more choices than before, by leveraging the alliances reliability, direct coverage, and network flexibility.

With offices across Europe and Asia we offer end-to-end logistics support, ensuring seamless communication from origin to destination. Secure and adaptable ocean freight solutions that meet the challenges of a shifting market.