Maersk, MSC, MOL enter Asia-ECSA VSA

The 2M Alliance partners will share space with G6 Alliance member MOL on two loops between Asia and the East Coast of South America.    Ocean carriers Maersk Line, Mediterranean Shipping Company (MSC) and Mitsui O.S.K Lines (MOL) have entered into a collective vessel sharing agreement (VSA) in the trade lane between Asia and the East Coast of South America.
   The new VSA includes two direct services operating with a total of 22 vessels and will replace all current VSAs for the carriers in the trade, effective from the first week of July.
   Under the terms of the new VSA, MOL’s existing CSW loop will be split into two distinct strings, the second of which MOL has dubbed the SW2, while Maersk and MSC will simply refer to the services as “Loop 1” and “Loop 2,” respectively.
   According to ocean carrier schedule and capacity database BlueWater Reporting, the CSW loop is presently operated with 15 vessels with an average capacity of 5,681 TEUs. The current CSW has a full port rotation of Xingang, Dalian, Qingdao, Busan, Shanghai, Hong Kong, Singapore, Santos, Paranagua, Buenos Aires, Montevideo, Navegantes, Paranagua, Sao Fanciscp do Sul, Santos, Cape Town, Ngqura, Singapore, Hong Kong, and Dalian.
   From the first week of July, the CSW loop will be operated with 10 MOL vessels with an average capacity of 5,500 TEUs. The expected port rotation is Chiwan, Yantian, Hong Kong, Singapore, Santos, Sepetiba, Itajai, Navegantes, Sao Francisco do Sul-Santos, Sepetiba, Capetown, Durban, Singapore, and Chiwan.
   The new joint SW2 service will deploy at total of 12 9,000-TEU average vessels, six each from Maersk and MSC, on an expected port rotation of Busan, Shanghai, Ningbo, Chiwan, Yantian, Hong Kong, Singapore, Santos, Parangua, Buenos Aires, Montevideo, Rio Grande, Paranagua, Santos, Coega, Singapore, Hong Kong, and Busan. 
   Both port rotations are referred to as “expected” as they are potentially subject to change on confirmation of berth window times.
   MOL said in a statement the new agreement will provide “improved product efficiency, wider connectivity with [its] existing network over the key transshipment ports and more direct port coverage in Asia and East coast of South America.”
   According to a statement from Maersk, “Asia to the East Coast of South America is a key route for the transport of electronics and automobile parts, propelling the automobile industry within Latin America. The route also facilitates protein exports from the East Coast of South America to Asia.
   “The VSA will simplify the network and improve operational responsiveness on the route. It will also enable us to deploy vessels that are better suited for East Coast South America terminal capabilities and continue to optimize utilization of vessel capacity, providing greater economies of scale,” the Danish ocean carrier added.
   Caroline Becquart, SVP and head of Asia network and VSA’s at MSC, said of the deal, “We are pleased to have signed this new vessel sharing agreement, it enables MSC to offer our customers improved reliability and wider port coverage. MSC will work hard to optimize the efficiency and utilization of the network which can lead to improvements in our environmental performance.”
   “These services offer our customers all kinds of new possibilities; direct connections between Rio Grande and Asia, between Busan and South America East Coast as well as two weekly sailings between Asia and Santos,” added MSC SVP for Latin America Alfonso Fusillo. “The product we can offer is much improved.”
   Within the Asia to East Coast South America trade, Maersk currently provides vessels on its joint ASAS loop with Hapag-Lloyd and CMA CGM, as well as taking slots on the AS2 service, which is operated by vessels from Hamburg Sud, CSCL, CMA CGM, CNNI, Hapag-Lloyd and Hanjin. MSC provides vessels along with Hamburg Sud on its Ipanema service, on which Maersk also purchases space.
   Maersk Line and MSC are partners in the 2M Alliance, cooperating on major east-west trades, while MOL is a member of the G6 Alliance along with ocean carriers APL, NYK, Hapag-Lloyd, Hyundai Merchant Marine, and OOCL.