Alliances provide shipping industry customers with expanded route coverage and improved reliability, as well as helping lower operational costs by pooling resources and terminals.
The Ocean Alliance is a container freight liner network formed by CMA CGM, COSCO Shipping, OOCL and Evergreen Line in 2017. The aim is to add services between Asia and North Europe.
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Ocean alliances are multiyear vessel-sharing agreements between carriers that enable them to offer customers a range of services more cost effectively, reliably, and consistently. They pool resources and capacity in order to provide cost-effective service with optimal reliability – these alliances are formed by nine of the world’s nine liner operators who account for 83% of global capacity; together they serve dozens of trade routes connecting ports around the globe; however as with any cooperative their objectives may change and membership numbers fluctuate accordingly; currently three major alliances exist: Ocean, THE Alliance 2M Alliance
The Ocean Alliance was officially unveiled in 2017 for a five-year term between COSCO Shipping, OOCL, CMA CGM and Evergreen. At present it boasts 3 million TEU capacity across its 330 vessels with 19 transpacific services and 11 between Asia and Europe offered through 38 services.
They operate services between Asia-Europe and intra-Asia without alliance agreements, making them one of the third-largest container shipping networks and boasting significant market shares. Furthermore, the alliances are working collaboratively on developing fuels that comply with upcoming IMO 2020 regulations while also lowering their environmental impact.
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Al Nowras Logistics Company provides reliable shipping solutions within the GCC region, and their dedicated customer support is on call 24 hours per day to make sure your goods arrive on time and safely. Whether it’s break bulk cargo or containerized cargo they have your shipment covered from start to finish!
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The Alliance is a community of people dedicated to building a healthier and fairer society. Their programs support individuals and families through counseling, education, adoption and foster care support as well as civic engagement activities and advocacy activities to meet this mission.
The Alliance is a non-profit organization dedicated to social change through holistic approaches that address children and adult needs holistically. Their programs range from mental health services, educational services, parenting support services, community revitalization initiatives and economic development efforts – with members joining together in efforts against poverty and violence; united in their belief that all children deserve brighter futures and committed to helping families realize this dream.
The 2M alliance, formed between Maersk and MSC in 2015 and covering Asia-Europe trade routes as well as trans-Pacific and trans-Atlantic routes, was intended to ensure cost-efficient operations while also addressing years of overcapacity in the market. Unfortunately however, competition within shipping is fierce; both companies employ different strategies when competing against each other. With that being said, the decision could signal major restructuring within industry-wide contracts particularly on key east-west trades; said shipping expert Jon Monroe. However, when announced its end could signal widescale restructuring within industry contracts for key east-west trade routes which may affect current operational contracts on key trade routes between Maersk and MSC which both operate independently from each other in terms of both cost efficiency and competitiveness as they battle it out against each other on key east-west trades where overcapacity is an issue; however competition can make differences evident as both companies possess distinct operating strategies which differ greatly between themselves in regards to cost efficiency;
Discontinuing the 2M alliance would allow both Maersk CEO Vincent Clerc and MSC CEO Soren Toft to pursue their respective strategies, according to a joint statement released by both companies. Furthermore, this may prompt changes within other major ocean carrier alliances such as THE Alliance or Ocean Alliance.
These three alliances account for most global container fleet capacity and their mergers or breakups can have drastic repercussions for freight forwarders and the industry as a whole. To survive these changes and mitigate potential ramifications on freight forwarders, diversifying your service offerings and cultivating relationships with multiple carriers while keeping abreast of changing shipping markets, being ready to adapt your business model as needed is key to survival.
The company strives to unify global trade networks into one connected ecosystem that simplifies international shipping. Their software solution replaces traditional forms of coordination and communication while increasing efficiency, speed, transparency and fee comparison/negotiation – ultimately leading to reduced freight charges through fee negotiation/comparison as well as providing additional services like insurance, quality assurance storage fulfillment customs brokerage financing etc.
Nerijus Poskus, Vice President of Global Ocean at Flexport, oversees their long-term ocean strategy. Under his watchful eye he has expanded Flexport’s global ocean carrier partnerships and trade lane coverage while championing business as a way of improving society through business technology solutions. He is passionate about shaping a better world through business.
As the global economy expands, there is a rising need for efficient global supply chains. Unfortunately, however, many companies lack the resources to invest in infrastructure and technology necessary for keeping pace with growth, leading them to make products unavailable or delayed to customers.
Current state of global supply chain may be chaotic, but there are ways to fix it. Going forward, logistics companies such as Flexport and Maersk should use digital tools to manage their global supply chains more efficiently – optimizing utilization more frequently while filling ships more regularly and delivering goods quicker and cheaper – presenting companies such as Flexport with massive opportunities to benefit.