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Ocean Alliance plans to operate trans-Pacific trades with vessels up to 18,000 TEU
OCEAN Alliance members CMA CGM, China Cosco Shipping, OOCL and Evergreen Line plan to deploy on the trans-Pacific trade 18,000-TEU ships from April; and it may in future introduce even larger containerships to the trade lane.
Initially, the alliance will deploy up to 175 vessels with capacities ranging from 4,200 TEU to 18,000 TEU on its trans-Pacific network with the strongest US east and Gulf coast port focus seen in years, reported IHS Media.
Ocean Alliance members said they could ultimately deploy up to 220 ships on the US trades and introduce 21,000-TEU ships to the trade, according to a vessel-sharing agreement (VSA) filed with US maritime regulators.
By pooling cargo on larger ships sailing to the US, the Ocean Alliance aims to mitigate overcapacity and gain the economies of scale needed to compete with the other major shipping alliances.
The US Federal Maritime Commission has begun its 45-day review of the proposed five-year alliance with a five-year potential extension. If the FMC doesn't stop the clock on the review to ask the carriers questions or seek a federal injunction against the VSA, the alliance will take effect on August 29 ?months before the network is actually deployed.
It's been only in the last few weeks as the peak season nears that trans-Pacific spot rates from Shanghai to the west coast have strengthened, with rates up 21 per cent year on year, at US$1,421 per FEU.
Spot rates from Shanghai to the east coast have also been strengthening in recent weeks, but rates are still down 29 per cent from last year, at $1,871 per FEU, according to the latest reading of the Shanghai Containerized Freight Index.
Initially, the alliance will deploy up to 175 vessels with capacities ranging from 4,200 TEU to 18,000 TEU on its trans-Pacific network with the strongest US east and Gulf coast port focus seen in years, reported IHS Media.
Ocean Alliance members said they could ultimately deploy up to 220 ships on the US trades and introduce 21,000-TEU ships to the trade, according to a vessel-sharing agreement (VSA) filed with US maritime regulators.
By pooling cargo on larger ships sailing to the US, the Ocean Alliance aims to mitigate overcapacity and gain the economies of scale needed to compete with the other major shipping alliances.
The US Federal Maritime Commission has begun its 45-day review of the proposed five-year alliance with a five-year potential extension. If the FMC doesn't stop the clock on the review to ask the carriers questions or seek a federal injunction against the VSA, the alliance will take effect on August 29 ?months before the network is actually deployed.
It's been only in the last few weeks as the peak season nears that trans-Pacific spot rates from Shanghai to the west coast have strengthened, with rates up 21 per cent year on year, at US$1,421 per FEU.
Spot rates from Shanghai to the east coast have also been strengthening in recent weeks, but rates are still down 29 per cent from last year, at $1,871 per FEU, according to the latest reading of the Shanghai Containerized Freight Index.
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