In a significant development for global container shipping, Ocean Network Express (ONE) has confirmed its participation in three transatlantic routes alongside the Ocean Alliance carriers, following the announcement of a joint operation of the transatlantic network by Ocean Alliance and Premier Alliance starting next year.

According to analysts at the liner database eeSea, this network reorganization represents a reform of the current transatlantic services operated by THE Alliance, which will be replaced by the Premier Alliance in early February.

The AL5 service, a transatlantic route focusing on the southern United States and the Caribbean with a transit via the Panama Canal and subsequent calls on the U.S. West Coast, is set to operate without alliance partners. Early indications suggest that HMM and OOCL will join ONE, dubbing the service HMM TA1 and OOCL ATW, respectively.

Key changes to this service include the removal of Canada from the schedule, discontinuing calls at Halifax and Saint John, and replacing a call at Everglades with one at Miami, while skipping the second call at Cartagena.

CMA CGM, a French container shipping company, is also reported to deploy capacity on this service, implying that at least two Ocean Alliance carriers will operate on former THE Alliance services starting next year.

Additionally, ONE will join the Ocean Alliance’s TAT2 transatlantic route, with Savannah and Charleston being replaced by Baltimore by 2025. The service, which will call at a terminal in New York, will also include a stop at the Port of Norfolk, as noted by CMA CGM.

On the TAT2 service, ONE has confirmed collaborations with OOCL and CMA CGM, with the VSA partnership potentially expanding in the coming weeks to include other members of the Ocean Alliance.

Jeremy Nixon, CEO of ONE, anticipates cooperation with other Ocean Alliance carriers in transatlantic trade: “We look forward to new collaborations with CMA CGM, Cosco, OOCL, and EMC in transatlantic trade. By combining our collective fleet deployments and market experience, we aim to provide comprehensive and reliable end-to-end customer services across all key market sectors in the transatlantic.”

Furthermore, with ONE’s joining of the TAT3 service, which will be marketed as TA3, eeSea analysts expect Le Havre, Charleston, and Miami to be removed from the 2025 rotation, adding a first-call stop at Southampton, and Antwerp and Rotterdam to switch places in their route rotation.

This strategic move signifies a significant shift in the transatlantic shipping landscape, with implications for shipping routes, alliances, and the broader logistics industry.

Implications of the Changes for the Shipping Industry

1. Increased Alliance Flexibility and Cooperation: The collaboration between Ocean Alliance and Premier Alliance, including ONE’s participation, indicates a trend towards more flexible and cooperative shipping alliances. This can lead to more efficient routing and better utilization of shipping assets across different carriers.
2. Service Reliability and Consistency: With the reorganization of services and the involvement of multiple carriers, there is an expectation of improved service reliability and consistency. This can be particularly beneficial for shippers who value predictable and dependable shipping schedules.
3. Market Competitiveness: The changes may intensify competition among shipping lines, as alliances strive to offer more comprehensive services to attract customers. This could lead to innovations in service offerings and potentially lower shipping rates due to competition.
4. Capacity Management: The deployment of capacity by carriers like CMA CGM and others on former THE Alliance services suggests a more dynamic approach to capacity management. This can help balance supply and demand, potentially stabilizing freight rates.
5. Environmental Impacts: As alliances adjust routes and schedules, there may be environmental implications, such as reduced emissions from more efficient routing and potentially less idling in ports due to better scheduling.

Effects on Shipping Rates and Routes

1. Rate Stabilization: The joint operation of services could lead to more stable shipping rates, as alliances can better manage capacity and demand across their networks.
2. Route Optimization: With the reorganization of routes, there may be optimizations that reduce transit times and lower fuel costs, which could be passed on to customers in the form of more competitive rates.
3. Service Diversification: The involvement of multiple carriers in the same service could lead to a diversification of services, offering shippers more options and potentially affecting rates based on service levels (e.g., faster transit times might come with a premium).
4. Alliance Power Dynamics: The power dynamics within alliances can influence rates, as larger carriers might have more leverage in setting rates. The inclusion of more carriers in these alliances could balance this power, potentially leading to more stable and fair rate settings.

New Routes Expected in the Transatlantic Network

1. Adaptation and Expansion: While specific new routes have not been mentioned, the reorganization suggests that there may be adaptations and potential expansions to the transatlantic network. This could include adding new ports or adjusting the frequency of calls at existing ports to better meet market demands.
2. Response to Market Conditions: Alliances may introduce new routes or adjust existing ones in response to market conditions, such as shifts in trade patterns or the need for alternative routes due to geopolitical issues.
3. Environmental and Regulatory Considerations: New routes could also be influenced by environmental regulations and the need for more sustainable shipping practices, which might lead to the creation of more direct routes to reduce emissions.

In summary, the changes in the transatlantic shipping network brought about by the collaboration between Ocean Alliance and Premier Alliance, along with ONE’s involvement, have wide-ranging implications for the shipping industry. These changes are expected to affect service reliability, competitiveness, and rates, while also potentially leading to the optimization and diversification of shipping routes.