Members of the Ocean Alliance — COSCO Container Lines, CMA CGM, Evergreen Line and Orient Overseas Container Line — signed a document today entitled the Day One Product, which sets out the proposed alliance network, including port rotation for each service loop.
The Day One network intends to deploy around 350 container vessels with an estimated total carrying capacity of 3.5 million TEUs, or 20-foot equivalant units, to provide one of the most comprehensive service coverages in the market. The trade lanes consist of 20 Trans-Pacific services covering an estimated 160 port pairs, with 13 Asia-West Coast North America services, seven Asia-East Coast North America and U.S. Gulf services; six Asia-Europe services with about 110 port pairs; five Asia-Mediterranean services with 165 port pairs; three Transatlantic services with 70 port pairs; five Asia–Middle East services made up of an estimated 70 port pairs, and two Asia-Red Sea services with about 35 port pairs.
As the main contributor to this alliance, CMA CGM said it will have the largest share, deploying a fleet of 119 vessels with a 35 percent capacity share.
“Ocean Alliance is the largest operational agreement ever made between shipping companies,” said Rodolphe Saadé, vice chairman of CMA CGM. “With more than 40 maritime services, we will be sharing our fleet with the largest Asian shipping companies. By offering more ports and more direct calls, as well as better transit times, we will provide our customers with unmatched quality services. This new offering is a cornerstone of our strategy as it reinforces our competitiveness and strengthens our position as a key player in the shipping industry.”
The top priority of the new alliance revealed last month is service quality and schedule reliability. Customers such as apparel and textile importers will benefit from a competitive selection of sailing schedules and direct port pairs, fast transit times and a highly efficient fleet of vessels to cater to the needs of today’s demanding and increasingly green global supply chains.
“The signing of the Day One Product marks an important step forward to show just how committed we are in developing the most competitive products to market and the high level of synergy and confidence we share in the partnership,” member carriers said.
The alliance said it has filed a master agreement with the Ministry of Transport of China and that the U.S. Federal Maritime Commission and South Korea’s Ministry of Oceans and Fisheries have approved the agreement. The Ocean Alliance has also completed its European Union self-assessment compliance review and is satisfied that its agreement and services are compliant with EU regulatory requirements.
The alliance said it will continue to work closely with all the authorities to ensure full compliance with applicable laws and regulations and secure the necessary regulatory approvals o commence operations on April 1.