A brief history of shipping alliance and detail about current shipping alliances in force

According to The Maritime Executive (2021) history of shipping alliances can be traced back to
the early 20th century when shipping companies began forming agreements to pool their
resources and increase operational efficiency. These alliances have evolved over time,
responding to changing market conditions and global trade patterns. Today, shipping alliances
play a crucial role in the industry, enabling carriers to optimize vessel utilization, reduce costs,
and provide more comprehensive global coverage.
The current shipping landscape is dominated by a few major alliances, which have emerged
through mergers, acquisitions, and strategic partnerships. These alliances bring together
multiple shipping companies that cooperate on specific trade routes, sharing vessel capacity
and coordinating schedules. Here are some of the prominent shipping alliances in force today
Sea trade Maritime (2023).
First alliance is, 2M Alliance. Formed in 2014, the 2M Alliance consists of Maersk Line
(Denmark) and Mediterranean Shipping Company (Switzerland). It is one of the largest alliances
in terms of vessel capacity and covers major trade routes, particularly the Asia-Europe and
transpacific trades.
Second alliance is, THE Alliance. Established in 2017, THE Alliance is composed of Hapag-Lloyd
(Germany), Ocean Network Express (Japan), and Yang Ming (Taiwan). This alliance operates on
various trade routes, including Asia-Europe, transpacific, and transatlantic.
Third alliance is, Ocean Alliance. Launched in 2017, the Ocean Alliance is a collaboration
between CMA CGM (France), COSCO Shipping (China), Evergreen Line (Taiwan), and OOCL (Hong
Kong). This alliance covers major East-West trades and has a significant market share.
And lastly the fourth is Alliance. The Alliance, formed in 2017, comprises Hapag-Lloyd, Yang
Ming, and Ocean Network Express. They cooperate on trade routes connecting Asia with North
Europe, the Mediterranean, and the Red Sea.
Furthermore, these alliances bring numerous benefits to both shipping companies and
customers. They allow carriers to share resources, consolidate services, and offer more frequent
sailings, resulting in enhanced efficiency and reduced costs. For customers, these alliances
provide access to a wider range of ports, more competitive pricing, and improved service
reliability Port technology (2022)
moreover, it is important to note that the dynamics of shipping alliances are subject to change
due to market conditions and regulatory factors. New alliances may emerge, existing ones may
dissolve, and companies may join or exit alliances based on their strategic priorities. Staying
adaptable and responsive to market demands is crucial in the shipping industry, ensuring the
continued evolution and effectiveness of shipping alliances Inbound logistics (2021).
REFERENCE

1. "Shipping Alliances: A Historical Perspective" by The Maritime Executive Available at:

https://www.maritime-executive.com/editorials/shipping-alliances-a-historical-
perspective. Accessed on 13 July 2023.

2. "Shipping Alliances: The Good, the Bad, and the Ugly" by World Maritime News
Available at: (https://worldmaritimenews.com/archives/221088/shipping-alliances-the-
good-the-bad-and-the-ugly/) Accessed on 13 July 2023

3. "Shipping Alliances: Are They Good for the Industry?" by Port Technology Available at:
(https://www.porttechnology.org/news/shipping_alliances_are_they_good_for_the_ind
ustry. Accessed On 13 July 2023

4. "The Three Major Shipping Alliances" by Inbound Logistics. Available at:

(https://www.inboundlogistics.com/cms/article/the-three-major-shipping-alliances/)
Accessed on 13 July 2023

5. "What Are Shipping Alliances?" by The Balance Available at:

(https://www.thebalance.com/shipping-alliances-4166544. Accessed on 13 July 2023