The Future of Shipping

The Future of Shipping: The Dissolution of 2M

‍‍
For ACONISA, reporting on the most important news in logistics transport is a priority, and then we will tell you more about the dissolution of the 2M alliance, formed by Maersk and MSC, at the end of 2024, this fact marks a significant milestone in the history of container shipping. This alliance, which for a decade dominated key trade routes, has ushered in a new era characterized by greater market fragmentation and the formation of new strategic alliances.

New alliances, new challenges

The departure of Hapag-Lloyd from THE Alliance has resulted in two new configurations:

Gemini Cooperation: This alliance, formed by Maersk and Hapag-Lloyd, seeks to optimize operations on east-west routes, taking advantage of the strengths of both companies. According to a press release from Maersk, “Gemini Cooperation will allow both companies to offer their customers a more efficient and reliable service, with shorter transit times and a higher frequency of departures.”
The Premier Alliance: Made up of ONE, Yang Ming and HMM, this alliance promises a powerful and reliable service on Asia-Europe and Trans-Pacific routes. As a Drewry report notes, “The Premier Alliance is positioned as a strong competitor in the market, offering extensive route coverage and significant capacity.”
For its part, Ocean Alliance, comprised of COSCO Shipping, CMA CGM, OOCL and Evergreen, maintains its structure and continues to be a dominant force in the market.

The factors behind the changes

The restructuring of shipping alliances responds to several interrelated factors:

Increased competition: The growing competition between shipping companies has led to a constant search for efficiency and economies of scale.
Changes in market demands: Fluctuations in demand, driven by factors such as the pandemic and the war in Ukraine, have forced shipping companies to adapt quickly to new market conditions.
Antitrust regulations: Regulatory authorities in several countries have expressed concern about market concentration and have imposed restrictions on shipping alliances.
‍
Impact on the industry and customers

The dissolution of 2M and the formation of new alliances will have a significant impact on the entire supply chain:

Greater flexibility: Customers will have a greater number of transportation options and will be able to negotiate better rates.
Increased competition: Increased competition between alliances could lead to a reduction in rates and an improvement in the quality of service.
Increased complexity: Market fragmentation could increase the complexity of supply chain management for customers.
Future Perspectives

The future of shipping alliances is full of uncertainties. However, some trends seem clear:

Increased focus on digitalization: Shipping companies will increasingly invest in digital technologies to improve operational efficiency and supply chain visibility.
Sustainability: The pressure to reduce carbon emissions and adopt more sustainable practices will drive shipping companies to seek innovative solutions.
Consolidation: Despite the current fragmentation, we may see new mergers and acquisitions in the future, as shipping companies seek to consolidate their position in the market.
‍
Conclusions

The dissolution of 2M and the formation of new alliances mark the beginning of a new era in container shipping. The coming years will be characterized by greater competition, greater complexity and a greater need for adaptation on the part of all actors in the supply chain.

References

Alphaliner (2023). Container Shipping Market Review.
Drewry (2023). The Impact of the 2M Alliance Dissolution.
Maersk. (2023). Annual Report.

Author: Mr. Jordy Stvaer.

‍