Maersk Line and MSC enter the next decade of their container capacity share of the three major east-west routes.
The Vessel Sharing Agreement 'is named 2M and is clearly a downsized version of the P3 Network which China veto.
The two main differences are that CMA CGM not participate this time bringing the combined share is slightly smaller, and there is no independent operational office is to operate. Ships and / or services
As with P3 2M will be the two largest container shipping companies in the world to allow as much cargo transport with less loops in which the largest ships sail. Between the Far East and Northern Europe five weekly services from Maersk Line and the two of MSC are followed by six loops of 2M. On the trans-Atlantic redersduo it will organize three services.
Maersk Line will be for the 21 services 2M total supply 110 ships and MSC 75. Slots converted to provide the Danish shipping company for 55% of all capacity and MSC for the remaining 45%.
Because the duo again should get some competition watchdogs, the necessary authorizations, the start of 2M by both carriers situated in early 2015.
With P3 Freight Network Dead in the Water Big Two Container Shipping Lines Settle for Vessel Sharing 
New 10 Year Arrangement Will Replace All Previous Deals with No Central Management
SWITZERLAND – DENMARK – WORLDWIDE – The two big hitters in container shipping, Mediterranean Shipping Company (MSC) and Maersk Line are to join together in a Vessel Sharing Agreement (VSA) which will cover all the three main East-West trade lanes: Asia-Europe, Trans-Pacific and Trans-Atlantic, despite the recent rejection of the P3 Agreement by the Chinese authorities which was to see the two join up with CMA CGM in a tripartite concord moving freight under a common management structure.
The new deal, to be called 2M and expected to commence early in 2015, is conditioned by filing of information to, and in some cases approvals by, relevant maritime authorities and will replace various VSA’s the two companies currently have in place. The arrangement means around 185 vessels operating 21 strings and MSC says it will both improve network efficiency and allow for lower slot costs through better utilisation of vessel capacity and economies of scale.
The estimated capacity of the ships involved exceeds 2 million TEU with the 21 strings split as: Asia/North Europe: 6, Asia/Mediterranean: 4, Asia/US West Coast: 4, Asia/US East Coast: 2, North Europe/USA: 3, Mediterranean/USA: 2. Maersk will supply about 110 vessels to MSC’s 75 and these represent roughly a 55% to 45% TEU split whilst the VSA will not include any joint marine operations. Each party will thus execute their own operations including stowage, voyage planning and port services and the ships will continue to be operated by the two individual lines.
2M will operate for ten years with a joint coordination committee monitoring day to day management of the network and the companies stress that, whilst the VSA will provide more sailings and direct port pairs, it will not include any commercial tasks or responsibilities which will remain the responsibility of the individual lines, negating any accusations of unfair collaboration. Unlike P3, this 2M will therefore have a smaller combined market share and operate simply as a VSA without any separate independent organisation with executive powers managing the network. Mr Diego Aponte, MSC Vice President was enthusiastic about the new arrangement, saying:
“MSC is pleased to have reached this agreement with Maersk Line. It represents another positive step in our continual drive to enhance our operational network in terms of scope, scale, efficiency and reliability. Our customers will be able to enjoy these benefits alongside the world class customer service that has been the cornerstone of our business since our formation in 1970.
“The 2M Vessel Sharing Agreement will enable us to achieve significant reductions in fuel consumption, driving down the carbon footprint of our shipping operations. With sustainability a key area of focus for MSC, we’re delighted that this vessel sharing agreement will mean major cuts in emissions while simultaneously enhancing our service to customers.”
SWITZERLAND – DENMARK – WORLDWIDE – The two big hitters in container shipping, Mediterranean Shipping Company (MSC) and Maersk Line are to join together in a Vessel Sharing Agreement (VSA) which will cover all the three main East-West trade lanes: Asia-Europe, Trans-Pacific and Trans-Atlantic, despite the recent rejection of the P3 Agreement by the Chinese authorities which was to see the two join up with CMA CGM in a tripartite concord moving freight under a common management structure.The new deal, to be called 2M and expected to commence early in 2015, is conditioned by filing of information to, and in some cases approvals by, relevant maritime authorities and will replace various VSA’s the two companies currently have in place. The arrangement means around 185 vessels operating 21 strings and MSC says it will both improve network efficiency and allow for lower slot costs through better utilisation of vessel capacity and economies of scale.
The estimated capacity of the ships involved exceeds 2 million TEU with the 21 strings split as: Asia/North Europe: 6, Asia/Mediterranean: 4, Asia/US West Coast: 4, Asia/US East Coast: 2, North Europe/USA: 3, Mediterranean/USA: 2. Maersk will supply about 110 vessels to MSC’s 75 and these represent roughly a 55% to 45% TEU split whilst the VSA will not include any joint marine operations. Each party will thus execute their own operations including stowage, voyage planning and port services and the ships will continue to be operated by the two individual lines.
2M will operate for ten years with a joint coordination committee monitoring day to day management of the network and the companies stress that, whilst the VSA will provide more sailings and direct port pairs, it will not include any commercial tasks or responsibilities which will remain the responsibility of the individual lines, negating any accusations of unfair collaboration. Unlike P3, this 2M will therefore have a smaller combined market share and operate simply as a VSA without any separate independent organisation with executive powers managing the network. Mr Diego Aponte, MSC Vice President was enthusiastic about the new arrangement, saying:
“MSC is pleased to have reached this agreement with Maersk Line. It represents another positive step in our continual drive to enhance our operational network in terms of scope, scale, efficiency and reliability. Our customers will be able to enjoy these benefits alongside the world class customer service that has been the cornerstone of our business since our formation in 1970.
“The 2M Vessel Sharing Agreement will enable us to achieve significant reductions in fuel consumption, driving down the carbon footprint of our shipping operations. With sustainability a key area of focus for MSC, we’re delighted that this vessel sharing agreement will mean major cuts in emissions while simultaneously enhancing our service to customers.”
Maersk Line has announced an agreement with Mediterranean Shipping Company (MSC) for a period of 10 years. The so-called Vessel Sharing Agreement (VSA) is based on the Asia-Europe, Transatlantic and Transpacific trades. With this action, one of the biggest shipping companies in the world (Maersk Line) will replace all VSA's in the moment connected to these trades.
The agreement between both companies includes 185 vessels with total calculated capacity of 2 million TEU. It was decided Maersk Lineand MSC to cooperate by sharing infrastructure (network). The mutual agreement is expected to benefit the customers of the companies with more frequent services and more port direct services.
The Vessel Sharing Agreement will allow Maersk Line and MSC to utilise more efficiently the capacity of the vessels. Søren Skou, Maersk Line CEO announced:
"I am very pleased with our agreement with MSC. We share the same ambition to have as efficient and effective operations as possible. We will continue to provide our customers with competitive and reliable container shipping in the East-West trades at attractive prices. To do so we have to be innovative and take out cost, while keeping a product that is best in class for our customers in terms of coverage, frequency and reliability. Our agreement with MSC is a step towards achieving all of these objectives in the East-West trades""Over the last years, Maersk Line has established itself as a leader in the industry through its customer focus and by improving its competitive cost position. With this agreement Maersk Line will be able to further enhance its customer offering while also reducing costs and CO2 emissions. I am confident that Maersk Line’s leadership, also after this positive step, will continue to find new ways to strengthen its competitive advantage and customer experience".
What is the difference between the 2M VSA agreement with the P3 alliance*?
1) The VSA agreement is for a smaller share маркет compared to the P3 alliance's influence.
2) The 2M is only for sharing vesselс, the P3 alliance allows owning jointly independent entity with executional powers.
Maersk Line will participate in the agreement with 110 vessels, more than 50% of the total TEU capacity. MSC in other hand is entering with 75 vessels. The two companies will retain their ownership, charter or operation over the vessels. There are no plans for joint marine operations at this point. The shipping companies will retain their ability to be independent considering sales, pricing, marketing, and customer service functions.
*P3 alliance is between the 3 big container shipping companies (Maersk Line, Mediterranean Shipping Company and CMA CGM) for cooperation on major shipping routes.
Comments
Post a Comment