A major reshuffling of ocean carrier alliances that went into effect in February 2025, while providing benefits for both carriers and shippers, is causing some temporary hiccups as everyone adjusts to the new network structures. So what changes are taking place, and how will shippers be impacted? Let’s unpack the topic a bit.

What has changed under the new ocean carrier alliances?

The biggest change is Hapag-Lloyd’s departure from THE Alliance, which also included Ocean Network Express (ONE), Yang Ming, and Hyundai Merchant Marine (HMM), to join Maersk in the newly created Gemini Cooperation. This move alone was the main catalyst for the alliance reshuffling. THE Alliance has been rebranded to The Premier Alliance, with all other partners remaining in place.

Maersk, meanwhile, parted ways with the Mediterranean Shipping Company (MSC) in their bilateral 2M Alliance, which was formed in 2015. The partners announced the breakup two years ago and began unwinding, and MSC has decided to go it alone at this point. 

What alliance has recommitted to sticking together?

The Ocean Alliance, formed in 2017, consists of four major carriers: CMA CGM, COSCO Shipping, Evergreen Marine and Orient Overseas Container Line (OOCL), a subsidiary of COSCO. While there was talk a few years ago of CMA CGM potentially leaving The Ocean Alliance to seek greater autonomy, the partners agreed in 2024 to extend their agreement through 2032.

Which major carriers are flying solo?

In addition to MSC, other major independents include ACL, ICL, ZIM Integrated Shipping Services and Wan Hai Lines, the latter mostly operating intra-Asia.

How do the ocean carrier alliances work?

Each carrier within an ocean carrier alliance has what is called a Vessel Sharing Agreement (VSA) with all the other members. This allows them to get space allocation on a vessel from an alliance member to meet its capacity needs and commitments.

Each alliance member maintains ownership of its containers, which are in essence loaned to shippers as part of their service contract. If a shipper uses a Non-Vessel Operating Common Carrier (NVOCC), they handle container procurement as part of a master agreement with the carrier.

Why did the carriers decide to reshuffle the alliance deck?

The decisions were driven by several factors aimed at improving efficiency, competitiveness and financial stability.

INCREASING VESSEL SIZE

Over the past decade, ocean carriers have added larger vessels, some exceeding 20,000 TEUs, to satisfy rising demand. However, consistently filling these ships has proven difficult, particularly on long-haul routes. Alliances allow carriers to share capacity so vessels can operate profitably.

MARKET CONSOLIDATION AND COST EFFICIENCY

Major carriers want to optimize vessel capacity, reduce operational costs and improve profitability by forming or reshuffling alliances. Through shared resources, carriers can reduce the number of sailings that they cancel – so-called “blank” or empty sailings – to improve economies of scale. 

SUPPLY CHAIN DISRUPTIONS AND VOLATILITY

The COVID-19 pandemic, port congestion and fluctuating demand led carriers to reassess their partnerships to better manage global shipping disruptions. The reshuffling allowed for more flexible routing and service reliability.

COMPETITIVE PRESSURES AND REGULATORY SCRUTINY

Governments and regulatory bodies closely monitor alliances to prevent monopolistic practices. These changes will help them adapt to regulatory concerns, while remaining competitive.

SERVICE EXPANSION AND ROUTE OPTIMIZATION

The alliance shifts enable carriers to optimize trade lanes, enter new markets and adjust their service offerings based on shifting global economics.

SHIFTS IN TRADE POLICIES AND TARIFFS

Trade wars, tariffs, policy shifts, and geopolitical tensions have influenced ocean freight routes. The restructured alliances help carriers ensure better access to key markets, while mitigating financial risks from trade restrictions.

What are the potential benefits for shippers in ocean carrier alliances?

While the changes primarily benefit ocean carriers, there are ways shippers can also benefit from reshuffled alliances, even if freight rates remain unchanged, as they largely have.

IMPROVED SERVICE RELIABILITY AND SCHEDULE INTEGRITY

With better vessel coordination and network optimization, shippers may experience fewer blank sailings and more predictable schedules. Some alliances have adjusted routes to improve port call efficiency, reducing the potential for congestion delays.

EXPANDED PORT COVERAGE AND MORE ROUTING OPTIONS

New ocean carrier alliance structures may offer more direct port connections, reducing the need for transshipment. This can result in more frequent sailings on specific trade lanes, giving shippers greater flexibility in supply chain planning.

ENHANCED EQUIPMENT AVAILABILITY AND CAPACITY STABILITY

With alliances pooling resources, there may be better equipment repositioning, reducing container shortages in key markets. Stable capacity allocations could help mitigate fluctuations in available space.

STRONGER DIGITAL AND CUSTOMER SERVICE OFFERINGS

Members of ocean carrier alliances are investing in digital solutions for better tracking, visibility and booking efficiency. Coordination among members can lead to improved service responsiveness and better communication on schedule changes.

POTENTIAL FOR MORE SUSTAINABLE SHIPPING OPTIONS

Ocean carrier alliances are on board with sustainability initiatives, offering eco-friendly services like slow steaming and carbon-reduction programs, benefitting shippers seeking greener logistics solutions. They are also committing to long-term net zero goals.

What challenges are being caused by the alliance restructuring?

Because these changes involve relocating vessels, shifting routes and lanes, changing ports of call and even terminals used, there is expected to be some short-term disruption while the kinks are worked out. 

Ahead of the official start dates in February 2025, carriers did a lot of preparation in an effort to minimize service disruptions, especially repositioning assets. It helped that the changes went into effect during production shutdowns as part of the Lunar New Year in China, with traditionally lower cargo demand reduced even more.

DIFFERENT TERMINAL AND PORT DESTINATIONS

One issue that is causing some pain in the short term is the fact that separate carriers within a new alliance sometimes call on the same port but at different terminals. This can result in higher costs for drayage or trucking cargo out of port, as it now has to travel a longer distance.

An NVOCC handling cargo on behalf of shippers has to build in “if/then” contingencies based on different scenarios. This is because they’re not always going to know at the time of booking which carrier will be transporting their client’s cargo. Shippers also need to understand their costs may vary depending on these shifting logistical factors.

Also, some carriers may now shift from one port to another within a particular country, for instance calling on Bremerhaven instead of the busy port of Hamburg in Germany.

SERVICE DISRUPTIONS

Shippers who could expect reliable service between ports are finding in some cases that carriers cannot provide the same service in certain trade lanes. For instance, as a result of a new alliance arrangement a carrier may no longer be able to handle cargo from a US East or West Coast port to a particular European country because they don’t have agreements with feeder vessel providers.  

Also, in the initial weeks under the new ocean carrier alliance structures there have been delays in sailings out of some ports due to a lack of vessel availability, an expected result.

THE ABILITY TO USE CARRIERS OUTSIDE A PARTICULAR ALLIANCE

Prior to the restructurings, ocean carriers would generally stay within their alliance partnership when scheduling sailings. Now it’s become more common for alliances to allow members to leverage Vessel Sharing Agreements outside the group to ensure adequate capacity and coverage. For instance, MSC has agreed to work with members of The Premier Alliance, plugging gaps in Asia-Europe lanes caused by Hapag-Lloyd's departure.

While a good thing from a service reliability perspective, this change can cause booking headaches for shippers or the NVOCC representing them.  

DRAYAGE APPOINTMENTS VS. JUST SHOWING UP

Another issue is that some terminals require drayage providers to make appointments to pick up and drop off containers, while others don’t. Now, drivers who were used to just showing up at a terminal under a former carrier alliance must make an appointment. While the argument can be made that this increases efficiency, some drayage firms may favor the former system as they can handle more loads that way.

What effect will the alliance shuffles have on “blank sailings” and capacity?

In the first half of 2025 at least, ocean carriers are scheduling fewer “blank sailings” (canceled ocean voyages due to a lack of demand), creating a capacity buffer as carriers feel out the dynamics of the new alliances. 

This could create downward pressure on carrier rates, a good result for shippers due to simple supply and demand. However, it could also result in some service disruptions on major East-West trade lanes, according to industry experts.

How can an NVOCC help shippers navigate the alliance changes?

With a broad network of industry partners, from carriers and alliances to truckers and 3PLs, an experienced NVOCC keeps on top of all aspects of ocean carrier restructuring. This includes familiarity with changes in lanes, impacts on service, delays and potential capacity shifts. They can proactively secure cargo space, suggest alternative sailings, and negotiate competitive rates to help mitigate the disruptive impact on shippers.

An NVOCC also helps with contingency planning. They can offer shippers flexible solutions such as utilizing multiple carriers or leveraging premium services like expedited and priority booking, when necessary. Their depth of expertise and knowledge helps shippers maintain supply chain stability, despite the effects of the new alliance structures.

I.C.E. Transport, a licensed NVOCC with nearly 40 years’ experience in facilitating cross-border shipping, has the relationships, expertise and problem-solving chops that allow us to provide peerless service, even as carrier alliances shift. We offer volume discounts and competitive rates, including seamless door-to-door service between the US and Europe. Our expertise in European lanes ensures smooth navigation through customs, avoiding costly delays.

As carriers shift port calls and vessel rotations, I.C.E. Transport stays ahead of these changes, ensuring your cargo is routed efficiently. For instance, if a preferred carrier experiences disruptions, we can quickly pivot to another within or outside an alliance, securing space and avoiding costly delays.

By coordinating with our many ocean line, trucking and rail partners, I.C.E. saves you time, reduces risks and provides peace of mind. We partner with a knowledgeable customs broker to handle all aspects of CPB compliance. And with thousands of bookings under our belt, we help you streamline shipping and lower costs. To learn more, contact the experts at I.C.E. Transport.