Many people have heard of shipping alliances, but few understand them well. Simply put, shipping alliances are cooperative alliances formed by shipping companies to adapt faster to market changes. The main role of an alliance is to help member shipping companies coordinate sailing schedules, share cargo space and shipping resources, and jointly construct and utilize port terminals and storage yards.
Take the China-US route for example. Currently there are three major alliances in the shipping market: the 2M alliance, the Ocean Alliance (OA), and THE Alliance (TA). They cover most of the US routes, major trade lanes like Asia-Europe, Trans-Pacific, and Trans-Atlantic.
These alliances aim to provide more efficient and stable shipping services by sharing vessels, consolidating routes, and improving capacity utilization. In practice, they share port terminals, berths, and logistics facilities. They also jointly plan routes and share shipping capacity and containers. This allows customers to access wider route networks, more sailing options, and greater capacity flexibility to better meet shippers' needs.
With extensive Cross-Border E-commerce logistics experience and stable sea, air and land routes, PGS CBEL has long-term contracts for shipping and warehouse capacity. We are a true ocean freight forwarder.
Since its establishment, PGS Logistics has been positioned as a professional group company providing sea, land and air logistics services globally with the goal to provide personalized and competitive logistics solutions for different customers. As a Chinese freight forwarder and agent of the International Air Transport Association (IATA) and the International Federation of Freight Forwarders Association (FIATA), it is equipped with various qualifications to directly cooperate with airlines and shipping companies. Meanwhile, it can provide related logistics services for import and export customs clearance, warehousing and land transport services. Whether it's pricing systems, space guarantees, cargo transfers, customs clearance, or final delivery, we can provide you with comprehensive and secure services in every aspect.
Take the China-US route for example. Currently there are three major alliances in the shipping market: the 2M alliance, the Ocean Alliance (OA), and THE Alliance (TA). They cover most of the US routes, major trade lanes like Asia-Europe, Trans-Pacific, and Trans-Atlantic.
• 2M Alliance
The 2M Alliance consists of two leading carriers - Maersk and MSC. It is one of the largest global shipping alliances, covering routes worldwide including Asia, Europe, North America and South America. (Though the two carriers announced earlier this year that they will "break up" in 2025.)• Ocean Alliance
The Ocean Alliance (OA) consists of CMA CGM, COSCO, Evergreen, and OOCL. OA dominates China-US cross-border e-commerce shipping, known for precise routes, fast transit times, and smooth pick-up and delivery.• THE Alliance
THE Alliance (TA) consists of Hapag-Lloyd, ONE, YML, and Hyundai Merchant Marine. TA provides worldwide shipping services covering major trade lanes like Asia, Europe, Mediterranean, North and South America.These alliances aim to provide more efficient and stable shipping services by sharing vessels, consolidating routes, and improving capacity utilization. In practice, they share port terminals, berths, and logistics facilities. They also jointly plan routes and share shipping capacity and containers. This allows customers to access wider route networks, more sailing options, and greater capacity flexibility to better meet shippers' needs.
Although shipping alliances seem like collaborations between carriers, some aspects deserve attention:
1. Alliances are not monopolies or total integration.
They are not simple slot charter agreements or oligopolies. Rather, members jointly decide major routes, port calls, capacity deployment, and slot allocations. However, operations remain independent - pricing, chartering, purchasing vessels, fleet management, container management, etc. Thus, antitrust regulators in China, US and EU have never ruled alliances as monopolistic. On the other hand, alliances enable more effective capacity control, route optimization, and cost reductions compared to old slot charter deals.2. Alliances typically only cover mainlane routes.
Some regional and feeder routes are not included. For example, within Ocean Alliance, Cosco and CMA have a Ningbo-Manila route but they don't jointly operate it under their intra-Asia brands.3. The significance of shipping alliances.
Alliances have largely ended the destructive market share battles between carriers. Capacity management and deployment are now more rational and responsive. For carriers, alliances reduce operating costs and allow serving more routes with smaller fleets and higher vessel utilization.With extensive Cross-Border E-commerce logistics experience and stable sea, air and land routes, PGS CBEL has long-term contracts for shipping and warehouse capacity. We are a true ocean freight forwarder.
Since its establishment, PGS Logistics has been positioned as a professional group company providing sea, land and air logistics services globally with the goal to provide personalized and competitive logistics solutions for different customers. As a Chinese freight forwarder and agent of the International Air Transport Association (IATA) and the International Federation of Freight Forwarders Association (FIATA), it is equipped with various qualifications to directly cooperate with airlines and shipping companies. Meanwhile, it can provide related logistics services for import and export customs clearance, warehousing and land transport services. Whether it's pricing systems, space guarantees, cargo transfers, customs clearance, or final delivery, we can provide you with comprehensive and secure services in every aspect.
