Timing is everything, but as international ocean container lines ready the February launch of reorganized alliances and vessel-sharing agreements, a miasma of global events is sure to put pressure on carefully crafted business plans. Headquartered in Singapore, ONE focuses on key east-west routes and collectively operates more than vessels with capacity of 1.
The simplified, hub-and-spoke network similar to those pioneered by airlines features mostly single operator loops and fewer port calls per service, calling high-efficiency terminals with 29 mainliner services and interregional shuttle services, and covers the full scope of U. Analysts say this may produce lower rates for shippers as the carriers compete head-to-head on global routes. Maersk is second with ships carrying 4. MSC is leveraging its position as the leading container line by also outdistancing competitors on newbuilds, with a staggering ships on order with estimated capacity of 2 million TEUs, or more than a third of its existing capacity.
The capacity equation becomes more muddled due to the changing situation surrounding the Red Sea in the Middle East. But attacks on merchant shipping begun in late by anti-Israel Houthi rebels based in Yemen led most major lines to divert services away from the Red Sea in , making voyages up to 14 days longer via the Cape of Good Hope around the Horn of Africa. The Red Sea violence turned into an unexpected jackpot for shipping lines, as the diverted voyages took capacity out of the market and helped boost container rates, resulting in billions in profits across the industry in But a ceasefire in the Israel-Hamas war, the collapse of the Assad regime in Syria and domestic issues roiling Houthi sponsor Iran changed the calculus in the region.
Red Sea attacks dwindled, and shippers are now wondering when carriers will return to the Suez route. A re-opening of the Suez route would boost U. East Coast container volumes, but likely undermine gains seen by West Coast gateways. In a service advisory, Maersk said that due to ongoing high security risks, it will phase in the east-west Gemini network by continuing to route vessels away from the Red Sea and around Africa.
In the trans-Pacific, American consumers helped pump up eastbound volumes toward record highs through late But carriers are also trying to make sense of the growing anti-China sentiment in the U. Cosco is fourth, at ships and 3. In April the partners will offer 22 rotations calling ports on the U. Gulf ports and Asia and U. East Coast hubs, effective in February.
