2M ocean alliance is winding down, reports MSC and Maersk
2M ocean alliance is winding down, reports MSC and Maersk SMC3 panel takes a look at nearshoring and reshoring, as China goes through some shifts Operate More Sustainably and Improve Logistics Performance by Moving to “The Edge” SMC3 panelists address potential for a recession U.S. rail carload and intermodal volumes are mixed, for the week ending January 21, reports AAR More Logistics News Last week, global ocean container carriers Geneva Switzerland-based MSC Shipping Company (MSC) and Copenhagen, Denmark-based Maersk A/S, a subsidiary of A.P. Moller-Maersk, said that they have reached a mutual agreement to terminate their 2M ocean alliance, a container shipping line vessel agreement in 2025. The alliance was established in 2015, with Maersk and MSC focused on ensuring competitive and cost-efficient operations on the Asia-Europe, Transatlantic, and Transpacific trade lanes. The 2M alliance is comprised of a minimum term of 10 years and includes a two-year notice of termination. “MSC and Maersk recognize that much has changed since the two companies signed the 10-year agreement in 2015. Discontinuing the 2M alliance paves the way for both companies to continue to pursue their individual strategies,” said, Vincent Clerc, CEO of A. P. Moller – Maersk, and Soren Toft, CEO of MSC, in a joint statement. “We have very much appreciated the partnership and look forward to a continued strong collaboration throughout the remainder of the agreement period. We remain fully committed to delivering on the 2M alliance’s services to customers of MSC and Maersk. [This] announcement has no immediate impact on the services provided to customers using the 2M trades. Each company’s customer teams will communicate with their respective clients to support during, and beyond, the phase-out of the 2M alliance.” LM previously reported that the 2M alliance had “dominated” the Asia-EU trade lanes with almost 35% of market share. In October 2014, the United States Federal Maritime Commission (FMC) signed off on a vessel sharing agreement (VSA) Maersk and MSC to launch the 2M alliance. FMC officials said at that time that that the organization concluded its review of the proposed VSA, which included the evaluation of information received from Maersk and MSC on response to questions from the FMC staff and Commissioner during the review period. It added that the agreement would authorize the carriers to share vessels and engage in related cooperative operating activities in trade lanes between the U.SD. and Asia, North Europe and the Mediterranean. Maersk and MSC first announced the 2M Network in July 2014, explaining it is a ten-year VSA that has an estimated capacity of 2.1 million TEU (Twenty-Foot Equivalent Units) or roughly 185 vessels, with Maersk contributing about 55 percent of its capacity. About the Author Jeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics Management , Modern Materials Handling , and Supply Chain Management Review . Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman Subscribe to Supply Chain Management Review Magazine! Subscribe today. Don’t Miss Out! Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices. Start Your Subscription Today!
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