WEEK 3 MARKET UPDATE

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.

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