OCEAN ALLIANCE PUBLISHES 2025 SCHEDULES
The Ocean Alliance has unveiled its updated shipping network for 2025. The group – comprised of COSCO, OOCL, Evergreen and CMA CGM – has provided customers with details of Suez and non-Suez routes as the ongoing Red Sea shipping crisis sees most containerships steer clear of Houthi attacks in the Middle East. The Ocean Alliance is the only group remaining intact this year. THE Alliance will become the Premier Alliance from February, with Ocean Network Express (ONE), HMM and Yang Ming Marine Transportation as partners, and Mediterranean Shipping Co (MSC) helping plug gaps on Asia-Europe trade lanes. From the end of January MSC is ditching Maersk in the 2M vessel sharing agreement to largely go it alone, and Germany’s Hapag-Lloyd subsequently exiting THE Alliance to join the Danish carrier in what will be called the Gemini Cooperation. The Ocean Alliance, meanwhile, has agreed to continue its vessel-sharing agreement until the end of March 2032.
HOUTHIS MAINTAIN ISRAELI BAN WHILE ALLOWING ALL OTHER SHIPS TO PASS
As the first phase of the ceasefire between Israel and Hamas came into effect yesterday, the Houthis of Yemen have provided an update on their Red Sea strategy. The Houthis said yesterday that so long as the ceasefire remains in place, international merchant ships may now transit the Red Sea. However, Israeli-owned and Israeli-flagged tonnage will remain targets, the Houthis said, adding that continued attacks on Yemen by British and American military forces could see ships from those countries targeted too. In support of Hamas, the Houthis from Yemen initiated a campaign against merchant ships passing through the Red Sea and the Gulf of Aden, targeting more than 100 ships since November 2023, leading to a major rerouting for most ships heading between Asia and Europe. The Houthis have repeatedly stated their campaign will continue until Israeli forces leave Gaza. Major shipowners, especially container lines, remain cautious about returning to the Red Sea.
TRUMP, TEAM AND TRADE
Albert Einstein famously said, “Insanity is doing the same thing over and over again expecting different results.”. Donald Trump may not be liked by many around the world, but he is definitely not insane. In fact, he has proved to be a man with a plan (however crazy) and has executed most of them like a skilled businessman. This time around he has one more advantage – he does not need to worry about getting re-elected. He does not qualify for re-election, as he will now begin his maximum second term. But he has decided to do things differently. For one, he has built up a team of fierce loyalists and those who completely align with his vision and mission. Listening to the confirmation hearings of some of his team members gives a sneak peek at what we can expect from the next four years. While Trump has the big picture, the real impact will be felt as the plans are executed, one after another. The news is that over 100 executive orders from tariffs to bidding for Greenland are awaiting him on the very first day, immediately following his inauguration. Looking specifically at shipping and trade, the history, background, comments and opinions of some of these Trump team members offer a glimpse of what is to come.
SHIPPER COMPLAINTS STACK UP AT THE FEDERAL MARITIME COMMISSION
Shipper complaints continue to stack up at the Federal Maritime Commission (FMC) with liners potentially on the hook for more than $75m from the latest two cases filed. Nielsen & Bainbridge, a home décor supplier from Texas, has filed a complaint against Ocean Network Express (ONE), OOCL, Evergreen and Yang Ming accusing them of systematically failing to meet service commitments, the use of coercion to require payment of extracontractual surcharges as well as amendments to service contracts, and what it terms as an “unreasonable” assessment of demurrage and detention charges. Nielsen & Bainbridge sought bankruptcy protection in 2023. Illinois-headquartered furniture retailer Euromarkets Designs has filed a similar complaint targeting Mediterranean Shipping Company, ONE, Evergreen, HMM, Maersk, Cosco and Wan Hai among others. The FMC has been besieged with record numbers of shipper complaints during the period of liner shipping’s greatest era of profits. The commission’s powers were strengthened with the passing of the Ocean Shipping Reform Act in 2022.