FMC Approves “Twin Stars” Collaboration
On September 9, the U.S. Federal Maritime Commission (FMC) gave the green light to the “Twin Stars” collaboration between Maersk and Hapag-Lloyd. After an in-depth review to assess its competitive impact, the agreement was approved with ongoing oversight and specific regulatory conditions.
In October 2024, Maersk and Hapag-Lloyd will determine whether to use the Suez Canal or the Cape of Good Hope for routes, aiming to address the instability in the Red Sea region. By February 2025, both companies will collaborate on east-west trade lanes, launching a service network with over 90% on-time performance. This network will include 27-29 main routes and 30 shuttle routes, supported by more than 300 vessels.
Maersk CEO Vincent Clerc and Hapag-Lloyd CEO Rolf Habben Jansen highlighted the efficiency and sustainability of this collaboration, with both companies actively leasing vessels to ensure adequate capacity.
Major Restructuring and Cooperation in Global Shipping Alliances for 2025
In September 2024, following Hapag-Lloyd’s exit from The Alliance, Yang Ming Marine Transport, HMM, and Ocean Network Express (ONE) announced a new collaboration called the Premier Alliance. Meanwhile, MSC plans to end its 2M alliance with Maersk in February 2025 and launch its independent east-west service network, marking a significant change in global shipping.
This restructuring follows the January 2024 announcement of the long-term “Twin Stars” collaboration between Maersk and Hapag-Lloyd, signaling a shift towards more diversified and flexible alliances in the shipping industry.
Premier Alliance and MSC Slot Exchange Cooperation
The Premier Alliance will cover major east-west routes, including those between Asia, the U.S. West Coast, U.S. East Coast, the Mediterranean, Northern Europe, and the Middle East, beginning in February 2025. MSC will also form a slot exchange cooperation with Premier Alliance members, focusing on nine routes, particularly between Asia and Northern Europe and the Mediterranean. This collaboration will increase direct port access and offer more frequent routes, enhancing customer service.
MSC to Operate an Independent Route Network
Starting in February 2025, MSC will introduce 34 loops across five key markets, offering routing options via both the Suez Canal and the Cape of Good Hope. This new network will cover 1900 direct port pairs through the Suez Canal and 1800 pairs through the Cape of Good Hope, improving global shipping efficiency.
MSC also plans a long-term operational partnership with ZIM on six trade routes between Asia and the U.S. East Coast and Gulf Coast, enhancing port coverage and providing LNG-powered container ships for improved environmental performance.
Challenges and Opportunities for Logistics Providers
The restructuring of global shipping alliances will intensify competition, especially on major trade routes. Logistics providers must adapt by reevaluating their service networks, investing more resources to stay competitive, and managing potentially higher operational costs. Failure to adjust quickly could result in customer losses.
However, these changes also present opportunities. Logistics providers can leverage the restructuring to share resources, broaden service offerings, and improve operational efficiency through synergies within alliances. By providing differentiated services, they can attract new customers and strengthen their market position.
In conclusion, logistics providers need to remain flexible and proactive in addressing challenges while capitalizing on the opportunities presented by these industry changes to ensure long-term success.
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