"THE Alliance" forged by six of the world’s largest multi-services shipping companies would challenge the dominance of global giants such as Maersk Line and Mediterranean Shipping Co. (2M).
The new partnership, is an expanded alliance of G6 and CKYHE, is expected to revolutionize the maritime industry in the next five years and beyond. THE Alliance is expected to add a seventh member due to ongoing merger discussions between Hapag-Lloyd and United Arab Shipping Company.
The carriers involved in “THE Alliance” - Hanjin, Hapag-Lloyd, “K”Line, Mitsui O.S.K. Lines, Nippon Yusen Kaisha and Yang Ming - said that the binding agreement is scheduled to be implemented in April 2017 subject to approval of all relevant authority.
Industry commentators were quick to note that the large number of carriers in THE Alliance, would make cooperation highly complex.
The move, they said, will build one of the leading networks in the container shipping industry combining approximately 3.5 million TEU (twenty-foot equivalent unit) which reaches 18 percent share of the global container fleet capacity.
All six partners operate advanced and competitive fleets with a total of more than 620 ships, which will be the basis of a dedicated fleet deployed into the groups’ future service portfolio. THE Alliance will boost a total carrying capacity of more than 4m teu.
The new grouping closes a circle of new partnerships that will dominate the movement of global cargo over the coming years. It is subject to regulatory approvals by U.S., Chinese and European maritime watchdogs.