The OCEAN Alliance, comprising CMA CGM, Cosco, OOCL, and Evergreen, on 27 February officially extended its vessel-sharing agreement for a further 5 years until 31 March 2032.
The extension is a strategic response to the evolving landscape of global shipping alliances, notably following the formation of the Gemini Cooperation between Maersk and Hapag-Lloyd announced in January and set to commence from February 2025.
The move is particularly significant in light of Hapag-Lloyd's upcoming departure from THE Alliance (THEA) and its new partnership with Maersk in the Gemini Cooperation (refer to FTA / APSA commentary on the Gemini announcement
HERE), which sparked concerns over a potential reshuffling of alliances.
The OCEAN Alliance extension is also likely to influence the strategic decisions of other alliances and shipping companies, particularly THEA, as they navigate the challenges of maintaining network reliability and terminal management.
This extension is yet another sign that the continuation of vessel-sharing arrangements post the April 2024 expiry of the Consortia Block Exemption Regulation (CBER) in both the EU and the UK, should give the Australian government a level of confidence to similarly repeal the protections offered to shipping lines aligned to Part X of the Competition and Consumer Act.