Across alliances! ONE and Evergreen reach a cabin exchange agreement

Liner companies are increasingly seeking space exchange or space leasing from non-alliance carriers.

According to the latest report from Alphaliner, Ocean Network Shipping (ONE), a member of THE Alliance, and Evergreen Marine, a member of the Ocean Alliance, have recently submitted a slot exchange agreement for the Trans-Pacific route to the US Federal Maritime Commission (FMC).

According to the agreement, ONE will participate in the Ocean Alliance’s Asia-US West Coast HTW loop, which calls at Taipei, Xiamen, Hong Kong, Yantian, Los Angeles, and Oakland, and currently deploys seven 12,000TEU ships of Evergreen Marine.

In return, Evergreen Line will participate in THE Alliance’s FP1 pendulum route between Northern Europe, Asia and the U.S. West Coast. This route deploys 15 9000TEU-9600TEU ships under ONE. However, Evergreen Line will only participate in operations from Japan to the West Coast of the United States.

Alphaliner said that the two parties have promised to provide each other with 150TEU of space per week, and this number can fluctuate up or down by 50%.

According to Alphaliner, after ONE participated in Evergreen Marine's HTW loop, it has reached four trans-Pacific route slot exchange agreements with the Ocean Alliance. In August 2021, ONE reached relevant agreements with CMA CGM, COSCO Shipping Lines, and OOCL.

For some time, due to the strong demand for transportation in the shipping market, liner companies have been eager to release shipping capacity to the market. However, in the charter market, there is no more available shipping capacity, causing liner companies to increasingly seek space exchanges with non-alliance carriers. Or space rental.

Taking ONE as an example, it is working hard to ensure the growth of booking demand and market share through more space exchange agreements.

In fact, despite achieving a load factor of 1,00% on the first leg of the Asia-North America eastbound trade in fiscal 2021, ONE’s cargo volumes fell by more than 400,000 TEU to 2.35 million TEU. The company attributed this result to “blank sailings caused by port congestion and vessel delays.”

Original text: https://mp.weixin.qq.com/s/Je-k-gtwotlfTuBlwcNlYw