Ocean Alliance contemplates deployment of up to 18,000-TEU ships

The vessel sharing alliance, which expects to launch in April 2017, is contemplating initially deploying up to 175 container vessels in U.S. trades, according to a Federal Maritime Commission filing.    Big 18,000-TEU vessels may be coming to U.S. ports after all.
   The Ocean Alliance revealed it is contemplating the deployment of vessels in size from 4,200 TEUs to up to 18,000 TEUs on the transpacific trade.
   The Ocean Alliance is a vessel sharing agreement between liner carriers CMA CGM of France, China’s COSCO Container Lines, Evergreen Line of Taiwan and Japan’s OOCL.
   In a filing with the Federal Maritime Commission (FMC) last week, Ocean Alliance members said they expect to launch the vessel sharing agreement in April 2017.
   The agreement will also cover services not regulated by the FMC, for example, the Asia-Europe, the Asia-Mediterranean, the Asia-Red Sea and the Asia-Middle East trades. All told, the Ocean Alliance said earlier this year it expects to operate over 350 containerships in 40 services globally, including about 20 services each in U.S. and Europe related trades.
    CMA CGM had its 18,000-TEU ship, the CMA CGM Benjamin Franklin, make several experimental voyages to U.S. West Coast ports late last year and early this year. In March, the French carrier revealed it would put a string of six of the 18,000-TEU ships onto the Far East-West Coast trade, but in April, it changed its mind and said it was postponing those plans, given the transpacific market situation and a desire to optimize the use of its fleet.
    In a filing with the FMC last week, the Ocean Alliance said it could adjust the number and size of ships up and down and could operate up to 220 ships ranging in size up to 21,000 TEUs without revising the agreement.
    The carriers said ships will be deployed as far as possible under a “best vessel for the service” practice where ships are assigned to services to maximize operational and cost efficiencies.
    In addition, the carriers noted they will establish an operation coordination center to coordinate, operate, manage and maximize the efficiency of the services. The service would monitor the Ocean Alliance network and performance, update and coordinate schedules, ensure schedule integrity and service quality, and support the member lines in their monthly financial settlement.
   The agreement is a five year-agreement, but can be extended another five years without amendment.
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Chris Dupin

Chris Dupin has written about trade and transportation and other business subjects for a variety of publications before joining American Shipper and Freightwaves.