By Nick Lung    Photo：by dendoktoor from Pixabay

From the perspective of reshaping the global supply chain, companies should proactively optimize the supply chain structure from a global perspective and select appropriate suppliers and partners to reduce supply chain risks. On the other hand, whether it is the "buyer" or the "seller" of logistics services, "complaints" and "games" are inevitable but cannot solve the problem.

Both supply and demand parties need to transform the relationship from "transaction" to "collaboration." Only by facing objective reality, proactively responding, and responding quickly to find reasonable and appropriate solutions can we continue to improve the resilience and reliability of the supply chain.

Hapag-Lloyd announced that it will join hands with Maersk to create a new long-term cooperation agreement "Gemini Cooperation" in February 2025. Today is equivalent to giving one year's notice to withdraw from THE alliance, where Yang Ming currently belongs.

Contractors pointed out that it has now been seen that Haberrod's cooperation with THE alliance will gradually decrease from February 2024. If THE does not make other changes, the current market share will be reduced by at least 30% from the original transoceanic route of nearly 30%. percentage points, THE's influence on the market will become smaller and smaller. Contractors expect that this may be the first step of the Gemini Cooperation. Maybe there will be followers, and the shipping alliance may start a reshuffle.

The current cooperation structure planned between Hapag and Maersk will have 290 ships and a shipping capacity of 3.4 million TEU. Hapag "has always followed its own path" in terms of freight rates in THE, and sometimes it will The European line has experienced particularly market-destructive prices.

In the future, cooperation with Maersk, which also likes to destroy prices, may push the shipping market into a chaotic period in the future. Other contractors pointed out that the shipping market is now the market of the big player Evergrande. It is very hard to work alone, but alliance cooperation must avoid monopoly concerns, and how to operate requires careful planning.

The alliance between the two parties will help shipping companies adjust their carrying capacity in recent years to adapt to the demand pattern of routes from Asia to Europe, the Atlantic and the Pacific. The companies are seeking new strategies to secure market share amid changing global demand in the post-pandemic era, where freight revenue has fallen in large part due to slower economic growth.

In addition, the cooperation between the two parties will improve port-to-port channel transit times, and customers will continue to maintain services under existing agreements. Notably, the cooperation will cover 7 areas of trade, including Asia/US West Coast, Asia/US East Coast, Asia/Middle East, Asia/Mediterranean, Asia/Northern Europe, Middle East-India/Europe and Transatlantic.

Further improve the quality of service provided to customers. In addition, it will benefit from improvements in operational efficiency and joint efforts to further accelerate industrial decarbonization.
 

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