CKYHE Alliance isn’t going anywhere right awayCKYHE Alliance isn't going anywhere right away
The CKYHE Alliance members have reconfirmed their cooperation until March 2017, after which two members will exit the vessel-sharing agreement and begin a new partnership under the newly formed Ocean Alliance.
Cosco, “K”Line, Yang Ming, Hanjin Shipping and Evergreen Line have announced a reorganization of their U.S. East Coast service network, while reconfirming the current cooperation scheme on the east-west trades will remain unchanged.
The announcement that China Cosco Shipping, CMA CGM, Evergreen Line and OOCL were teaming up in the Ocean Alliance set off frantic speculation about where that left the three alliances that were affected. The Ocean Three will lose China Shipping and CMA CGM, the G6 loses APL and OOCL and the CKYHE loses Cosco and Evergreen.
Concern among carrier customers is that the reshuffling of alliances will leave them with fewer choices and widespread service changes. Joerg Hoppe, DB Schenker director and head of ocean freight for North-Central China, said the new alliance raised some serious issues.
“We are concerned about the schedule changes and inherent service issues that come with all of this,” he toldJOC.com. “We have to prepare our customers for significant impacts on lead times and on-time performance, at least until things have settled again.”
But in an bid to reassure the market that its services will remain in place until the Ocean Alliance starts operating in April next year, the CKYHE has announced that it will provide five Asia-U.S. East Coast services (AWE1/AWE3/AWE4/AWE8/NUE) from early June.
The alliance members have redesigned the services to provide wide port coverage with AWE1/AWE3/NUE services upsized and AWE4/AWE8 services restructured to improve competitiveness.
The port rotation of the Asia-US East Coast services will be:
AWE1(nine x 6,500-TEU vessels) — Ningbo, Shanghai, Busan, New York, Wilmington, Savannah, Busan, Ningbo
AWE3 (10 x 8,500-TEU vessels) — Hong Kong, Yantian, Kaohsiung, Shanghai, Busan, Colon, Savannah, Charleston, Norfolk, Singapore, Hong Kong
AWE4 (10 x 8,500-TEU vessels) — Qingdao, Ningbo, Shanghai, New York, Boston, Norfolk, Qingdao
AWE8 (10 x 8,500-TEU vessels) — Xiamen, Kaohsiung, Hong Kong, Yantian, Singapore, New York, Norfolk, Savannah,
NUE (10 x 8,500-TEU vessels) — Qingdao, Ningbo, Shanghai, Colon, Savannah, Charleston-Baltimore, New York, Colon, Qingdao
The CKYHE’s east-west services — Asia-North Europe, Asia-Mediterranean, Asia-U.S. East Coast , Asia-U.S. West Coast and Trans-Atlantic — will remain unchanged until the end of March 2017.
“The industry is in a state of flux,” said Xeneta CEO Patrik Berglund. “Cosco and CSCL are looking to get their recent merger approved by EU and U.S. regulators and, together with Evergreen, OOCL and CMA CGM, form a new east-west mega-alliance. Such a powerful grouping would challenge the market dominance of the Maersk-MSC 2M vessel-sharing agreement, and possibly drive the price war to new highs, or rather lows.”