New Alliances will have fewer Direct Port calls : SeaIntel

Posted by Daily Shipping Times on 10-03-2017        Tweet

LONDON: As carriers begin extricating themselves from their current vessel sharing agreements and reposition ships in preparation for the launch of the new Ocean Alliance and THE Alliance on April 1, an analysis of the new networks has revealed a surprising loss of direct port connections.

Now that the complete network details have finally been made available by the carriers, maritime analyst SeaIntel found that on Asia-Europe and the Trans-Pacific, a significant number of direct port-to-port combinations will be removed.

With 78 port-pairs lost, Northeast Asia-Mediterranean is the sub-trade that will see the largest loss of connectivity and product differentiation with the launch of the new alliances, SeaIntel found.

Port Klang will be highly impacted negatively by the new upcoming networks in terms of connectivity to North European Ports. “In fact, given the large consensus among the new alliances to rely on either Singapore as Southeast Asia hub, as is the case for Ocean and

THE Alliances, or Tanjung Pelepas as is the case for 2M Alliance, Port Klang will be offered significantly less on this trade,” according to the analyst.

There will be 22 lost port-pairs within the Southeast Asia-Mediterranean sub-trade. The majority of these lost port-pairs show that especially connectivity from the hubs of Port Klang and Tanjung Pelepas to Mediterranean ports will decrease significantly. While five port-pairs out of Singapore will disappear, the new alliance networks will offer four new products out of Singapore to Mediterranean ports, all from the Ocean Alliance.

SeaIntel found the Trans-Pacific trade will also experience a significant loss in product diversification, as the new alliance networks will “massively” reduce the number of direct port-pairs. A total of 150 direct port-pairs will no longer be available when the new alliances begin and only 56 new port-to-port combinations will be offered compared with the current network.

In addition to this, the port-pairs that remain in the current and new alliance networks will see a massive loss in service frequency, with 135 out of 354 remaining port-pairs seeing a decrease in service frequency, according to the analyst.

“This will have a clear impact for shippers and forwarders, as less direct combinations will necessarily lead to more cargo needing to be transshipped,” was SeaIntel’s conclusion.