Ocean Three Joins the Market

A new shipping alliance has been formed between three boxship giants, as confirmed by the CMA CGM Group, which has signed three major agreements with China Shipping Container Lines (CSCL) and United Arab Shipping Company (UASC), forming what will be known as the Ocean Three.

The alliance is  formed on the basis of a combination of vessel sharing agreements, slot exchange agreements and slot charter agreements.

According to CMA CGM, the agreements concern the following maritime trades: Asia-Europe, Asia-Mediterranean, Transpacific and Asia-United States East Coast.

The agreements  are said to complete the CMA CGM offering on the biggest global maritime markets:

• On the Asia-Europe trade: 4 weekly services, which complete the 2 existing services, thereby offering 6 departures per week
• On the Asia-Mediterranean trade: 4 weekly services, 2 to the Mediterranean, 1 to the Adriatic and 1 to the Black Sea the only one on this market
• On the Transpacific: 4 weekly services to California and 1 service to the Pacific Northwest (United States and Canada)
• On the Asia-US East Coast trade: 1 service via the Suez Canal and 1 service dedicated to the Gulf of Mexico.
• The agreements on the Transatlantic trade are being finalized and will soon be announced.

CMA CGM said that rotations will be optimized with calls in all the biggest Asian, European and North American ports, using transshipment hubs common to the three partners.

The demise of the P3 Network, proposed by Mærsk A/S (Maersk Line) together with MSC Mediterranean Shipping Company S.A. and CMA CGM S.A has seen the three shipping giants opt for less ambitious plans in pursuit of a similar alliance.

The decision on the Ocean Three tie-up comes in the wake of 2M formation between Maersk Line and Mediterranean Shipping Co., which is pending approval from the U.S. and China.

Neither CSCL nor UASC had previously committed to a major alliance, however having in mind their newbuild orderbook, five 19,000-TEU ships on order each, both shippers bring favourable assets to the table.