Maersk links hands with competitors

Maersk Line has established a new Vessel Sharing Agreement (VSA) with its two largest rivals to redirect focus on booming China and away from a possibly weakening US economy.

The shipping major has linked hands with Mediterranean Shipping Company (MSC) and CMA-CGM in the trans-Pacific trade that will start in April 2008.

This agreement will consist of three strings of five vessels each between Asia and North America and will replace Maersk Line's TP5 and TP8, MSC's New Orient Express and CMA-CGM's Yang Tse Service. It aims to provide shorter transit times out of Northern China and improve westbound products adding non-restricted corridors into Kaohsiung, Hong Kong and Yantian for both import and export cargo.

Industry experts agree the consolidation of routes is an industry practice to reduce costs and capacity amid rising fuel prices and trade imbalance among trading nations.

"Rates have not supported our cost to serve on different products in the Pacific," said Vincent Clerc, vice president of pacific route management for Maersk Line. "We felt that a partnership of this sort would not only enable us to address our cost structure, but also to provide a dynamic enhanced product for our customers, without adding any capacity on the market."

The first and second string of this VSA will consist of five 8,000 TEU vessels while the third string will redeploy five 4,000 TEU vessels. 

"Given the rising cost of bunker fuel and the distances travelled, a post-Panamax level of efficiency and cost base is needed in the trans-Pacific," said Robert Kledal, vice president of route management for Maersk.

Maersk Line, MSC and CMA-CGM are confident that this agreement will promote competitive cargo shipping products in the trans-Pacific trade and will support reliable service delivery with minimized environmental impact, Kledal explained. "This new agreement will maintain capacity in this trade, reduce environmental impact and will demonstrate significant other advantages to both the shippers and consumers. With a schedule built around efficient speed, this VSA will minimize the impact of fuel cost increases on the Pacific trade."

Maersk Line has established a new Vessel Sharing Agreement (VSA) with Mediterranean Shipping Company (MSC) and CMA-CGM in the trans-Pacific trade that will start in April 2008.

This agreement will consist of three strings of five vessels each between Asia and North America and will replace Maersk Line’s TP5 and TP8, MSC’s New Orient Express and CMA-CGM’s Yang Tse Service. It aims to provide shorter transit times out of Northern China and improve westbound products adding non-restricted corridors into Kaohsiung, Hong Kong and Yantian for both import and export cargo.

The first and second string of this VSA will consist of five 8,000 TEU vessels while the third string will redeploy five 4,000 TEU vessels. "The 8000 TEU vessels on the two largest loops of this new network make this an efficient, cost-effective and environmentally friendly solution for our customers shipping needs," Robert Kledal, vice president of route management for Maersk said.

Maersk Line, MSC and CMA-CGM are confident that this agreement will promote competitive cargo shipping products in the trans-Pacific trade and will support reliable service delivery with minimized environmental impact. Kledal, explained, "This new agreement will maintain capacity in this trade, reduce environmental impact and will demonstrate significant other advantages to both the shippers and consumers. With a schedule built around efficient speed, this VSA will minimize the impact of fuel cost increases on the Pacific trade."