Four global shipping giants form new alliance

FOUR major shipping lines, including COSCO Container Lines, have penned a new alliance which will bring together a fleet of more than 350 containerships.

In a media release, French CMA CGM said the company, together with COSCO Container Lines, Evergreen Line and Orient Overseas Container Line have signed on Wednesday a Memorandum of Understanding to form "OCEAN Alliance".

The new alliance aims to enable each of them to offer competitive products and comprehensive service networks covering the Asia-Europe, Asia-Mediterranean, Asia-Red Sea, Asia-Middle East, Trans-Pacific, Asia-North America East Coast, and Trans-Atlantic trades.

"This new partnership will allow each of its members to bring significantly improved services to its respective customers," member carriers said in the statement.

"Shippers will have an attractive selection of frequent departures and direct calls to meet their supply chain needs, including access to a vast network with the largest number of sailings and port rotations connecting markets in Asia, Europe and the United States."

Initially the deployment will cover more than 40 services globally mostly connected with Asia, including about 20 services each in the U.S. and Europe related trades.

The new alliance is subject to regulatory approvals of competent authorities. It is expected to begin operations in April 2017. The initial period of the Alliance shall be five years.