Ocean Network Express, HMM, and Yang Ming Marine will continue the Premier Alliance for five years, effective February 2025
Earlier this week, three major global container shipping lines—Ocean Network Express (ONE), HMM, and Yang Ming Marine—announced that they will continue their close collaboration under a new alliance name, Premier Alliance, for the next five years, starting in February 2025.
This alliance will operate various key services along the major East-West trade routes, including Asia-North America West Coast, Asia-North America East Coast, Asia-Mediterranean, Asia-North Europe, and Asia-Middle East.
“We’re pleased to share that our strategic partnership with HMM and Yang Ming in the East-West trades will be extended,” said Jeremy Nixon, CEO of ONE. “Starting February 2025, the close cooperation between the three companies will be further strengthened under this new partnership. Together, the Premier Alliance will offer robust, reliable, and efficient end-to-end direct port services for customers on the Transpacific and Asia-Europe trade routes.”
In addition, the Premier Alliance will collaborate with the Mediterranean Shipping Company (MSC) through a slot exchange arrangement on the Asia-Europe trade route, covering nine services. ONE mentioned that the goal is to increase direct port coverage and offer more frequent sailings in the Asia-North Europe and Mediterranean lanes.
Philip Damas, director and head of the supply chain advisory practice at Drewry, commented that the formation of the Premier Alliance is part of a broader reorganization of ocean carrier alliances.
“The newly named ‘Premier Alliance,’ with just three carriers, will replace the current ‘THE Alliance’ after Hapag-Lloyd leaves to join the competing ‘Gemini Alliance’ with Maersk, and the ‘2M Alliance’ ends,” Damas explained. The third major alliance, ‘Ocean Alliance,’ will continue unchanged.
According to Damas, MSC could have been left without strong partners after the dissolution of the 2M Alliance with Maersk. However, MSC announced partnerships with Zim on the Transpacific route and with the Premier Alliance on the Asia-Europe route. Notably, this is not a formal fourth alliance.
“For exporters and importers, this means that the three major alliances will remain, alongside smaller cooperation agreements with MSC,” Damas added. “Even MSC, the world’s largest carrier, will still collaborate with other carriers to maintain the service frequency offered by the three major alliances.”
Jon Monroe, president and founder of Jon Monroe Consulting, noted that this decision makes sense since all carriers aim to provide comprehensive global services.
“The inclusion of MSC as a slot exchange partner significantly enhances the alliance, as ONE, HMM, and Yang Ming couldn’t have achieved this on their own,” Monroe said. “It also strengthens MSC’s position, given its expected increase in capacity by 2025. The partnership helps fill the gap left by Hapag-Lloyd’s departure, and MSC’s capacity of 1.8 million TEUs on order further supports this. I’m not entirely sure why they felt the need to change the alliance name, though.”
SUMMARY:
⚓ Gemini Alliance: A new shipping alliance formed by Hapag-Lloyd and Maersk after leaving THE Alliance.
🚢 THE Alliance: A current shipping alliance consisting of several shipping companies, including Hapag-Lloyd, ONE, and Yang Ming, which will be replaced by the Premier Alliance.
⛴️ 2M Alliance: A former shipping alliance between Maersk and MSC, which ended its operations.
📊 Drewry: A London-based consulting and research firm specializing in maritime and logistics services.
👨💼 Philip Damas: Director and head of the supply chain advisory practice at Drewry, a leading maritime and logistics consultancy based in London.
👔 Jeremy Nixon: He is the CEO of Ocean Network Express (ONE).
📈 Jon Monroe: He is the president and founder of Jon Monroe Consulting, a firm specializing in consulting services for the logistics and supply chain industry.
🚢 Formation of Premier Alliance: Three major global container shipping lines—Ocean Network Express (ONE), HMM, and Yang Ming Marine—announced the continuation of their collaboration under a new name, Premier Alliance, starting in February 2025 for a period of five years.
📦 Key Trade Routes: This alliance will operate key services on major East-West trade routes, such as Asia-North America West Coast, Asia-North America East Coast, Asia-Mediterranean, Asia-North Europe, and Asia-Middle East.
🤝 Strengthened Partnership: Jeremy Nixon, CEO of ONE, emphasized that the partnership will offer strong, reliable, and efficient end-to-end direct port services, particularly for the Transpacific and Asia-Europe trade routes.
🛳️ Collaboration with MSC: The Premier Alliance will also partner with Mediterranean Shipping Company (MSC) through a slot exchange on the Asia-Europe route, covering nine services to increase direct port coverage and sail frequency in the Asia-North Europe and Mediterranean regions.
🔄 Industry Reorganization: According to Philip Damas of Drewry, the formation of the Premier Alliance reflects a broader reorganization of ocean carrier alliances. It replaces ‘THE Alliance’ after Hapag-Lloyd’s departure to join the ‘Gemini Alliance’ with Maersk, while the ‘Ocean Alliance’ continues unchanged.
🌍 New MSC Partnerships: MSC, previously left without strong partners after the end of the 2M Alliance with Maersk, has established new partnerships with Zim on the Transpacific route and with Premier Alliance on the Asia-Europe route, although this does not constitute a formal fourth alliance.
⚓ Alliance Stability: For exporters and importers, the industry will maintain the presence of three major alliances, alongside smaller cooperation agreements, ensuring continued frequency of services globally.
📈 Strategic Importance of MSC: Jon Monroe highlights that MSC’s inclusion as a slot exchange partner strengthens the alliance’s ability to offer global services. MSC’s growing capacity, expected to reach 1.8 million TEUs by 2025, supports the alliance after Hapag-Lloyd’s exit.
❓ Name Change Mystery: Monroe expressed uncertainty over the need to change the alliance name but acknowledged that the decision makes strategic sense in the current shipping landscape.
UNDERSTAND WORDS;
🛠️ Alliance: A formal partnership between companies working together to achieve shared goals, like in shipping.
🤝 Close network collaboration: A strong, ongoing cooperative effort between companies to improve service and operations.
📋 Comprised of: Made up of, or consisting of. Refers to the different services or elements that make up the alliance.
💪 Strengthen: To make a partnership or collaboration more powerful and effective.
⚡ Enhance: To improve or increase the quality of something, such as a partnership or service.
🔗 Dependable end-to-end direct port: Reliable service that covers every step of the shipping process, from the origin port to the destination port.
🔄 Tripartite alliance: A partnership involving three parties or companies, such as ONE, HMM, and Yang Ming.
🚢 Slot exchange cooperation: An agreement between shipping companies to share space on their vessels, improving service flexibility.
🔄 Clarification of the big reshuffle: Explanation of a significant reorganization within the shipping industry.
🌍 Leave isolated: When a company is left without partners or alliances, making it more vulnerable or less competitive.
🤏 Narrower cooperation: A more limited, specific partnership that focuses on fewer areas compared to a full alliance.
🌐 Full complement of services globally: Offering a complete range of shipping and logistics services on a global scale.
