‘The Premier Alliance’

This new Alliance will see Ocean Network Express, Hyundai and Yang Ming team up once again without Hapag Lloyd which previously made up ‘The Alliance’

The Premier Alliance is to last for 5 years, and will cover Asia-Europe, as well as the transpacific trade. The combined fleet will consist of 321 container ships, with an estimated capacity of 4.5million TEU . In addition to this MSC has also agreed a new vessel sharing agreement with the Premier Alliance and will add additional capacity through a further nine services between Asia and Europe.

MSC

MSC has announced its new stand-alone East-West network from February 2025 after the breakup of the 2M Alliance with Maersk. Interestingly they are publishing a combination of sailings via both the Cape of Good Hope and the Suez Canal as they hope that the Red Sea Crises may end next year.

They also have the partnership with The Premier Alliance as above., which will give them a new  service to Southampton.

Furthermore MSC have signed a deal with ZIM on the Asia – North America Trade as they continue to push to grow market share.

‘The Gemini Cooperation ‘

With the breakup of the 2M Alliance between Maersk and MSC, and Hapag leaving ‘The Alliance’ now to be known as the Premier Alliance from 2025. It perhaps makes sense that these 2 heavyweight carriers would combine and form their own alliance, branded the ‘Gemini Cooperation’.

This is also scheduled to commence from February 2025. The new partnership will reportedly include a fleet of around 290 vessels with a combined capacity of 3.4 million TEU. This will be made up of 60% Maersk and 40% Hapag Lloyd.

‘Ocean Alliance’

So who else does that leave, OOCL/CMA/Coscon and Evergreen will continue as normal in the ‘Ocean Alliance’ agreement.

This Alliance has been extended for a further 5 years to 2032 as it continues to cover a large percentage of the market share. The group offers a capacity of around 4.3 million Teu globally. The Ocean Alliance was previously extended to 2027, however with the partial break up of other alliances they wanted to show strength and ensure a stable and reliable service by extending the agreement further.

Summary

Premier Alliance – ONE, Hyundai, Yangming (9 further services with MSC)

The Gemini Cooperation – MSK, Hapag Lloyd

Ocean Alliance – OOCL/CMA/Coscon and Evergreen

MSC Stand-Alone Service

This then concludes the three major Alliances in addition to the stand alone service by MSC, as all the major carriers continue to jostle to maintain and grow their market share.

2025 certainly sees a bit of a shake up and we all hope that this improves carriers service and reliability which has been heavily disrupted during 2024.

We also hope that 2025 may bring the end to the Red Sea crises.

The post Shipping Alliances are shaping up for 2025 appeared first on Pinnacle Freight.

We are pleased to inform you that The International Longshoremen’s Association and the U.S. Maritime Alliance reached a tentative six-year agreement on the 9th January.

This agreement protects union jobs and enables the modernization of ports on the East and Gulf coasts with new technologies. These improvements will enhance safety, efficiency, and the strength of our supply chains, ensuring that your orders and shipments continue smoothly without interruption.

Whilst no details of the agreement have been released, the two sides have agreed to continue to operate until the USMX member can ratify the terms of the final contract.

If you need any further information, please do not hesitate to contact us at enquiry@pif.co.uk

The post US Port Strike Averted appeared first on Pinnacle Freight.

If strikes were to go ahead this would lead to heavy disruption and significant delays in cargo movement.

It is estimated that the East Coast /Gulf ports handle approximately 55.5% of US container import volumes year to date.

Whilst imports from Asia can divert to the West Coast ports, that would put significant strain on the port and landside infrastructure.

European exporters sending cargo to the US would be even more impacted as there are few viable options other than to ship cargo to the East Coast. It is likely that shippers would be stranded as any alternative options are well short to handle any increased capacity.

This will undoubtedly lead to port congestion, substantial delays, container shortages and increased shipping costs for exporters to the US market.

One possibility to avoid a strike is for the US government to invoke the Taft-Hartley Act with a court order for an 80-day cooling off period, which happened in the 2022 in relation to West Coast ports.. However, this action may be delayed as they explore other options, considering the potential political ramifications ahead of the election.

Whatever happens, Pinnacle will closely monitor the situation and keep our customers informed of any developments. Should the strikes occur we will help to try and find alternative solutions wherever possible and minimize the impact on your supply chain.

If you have any questions or would like any more information regarding shipping, please do not hesitate to contact us.

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Summary of Sea-freight market 2024

Red Sea Crises

The biggest and most disruptive event has to be the Red Sea Crises which started back in December 2023. The has resulted in the vast majority of shipping lines diverting vessels around the Cape of Good Hope.

Impacts of the Red Sea Crises

Increased costs – fuel usage has increased by an approximate 40%

Longer Transit times – journeys are taking approximately 14 days longer.

Container and equipment shortages – equipment is tied up on vessels and repositioning is not as effective

Capacity reductions – an estimated loss of 15-20% of capacity due to the longer transit times and deployment of vessels

Other Challenges

Port Strikes in US and Canada

US East Coast and Gulf Port Strikes were averted but have a deadline of the 15th January. So pending strikes could be a factor in Q1 2025

Canada port strikes in Prince Rupert Vancouver and Montreal impacting 40% of the ports capacity

Continued unrest – Middle East, Ukraine War and tensions in the South China Sea.

US Election – importers in the US increased volumes from Q3 with pending Election and tariffs being introduced by Trump.  US rates remained high during 2024.

Overall rates in 2024 were over 50% higher than in 2023.

Expectations in 2025

Trump Effect – applying across the board tariffs of 10% to 20% on most of the $3 trillion worth of annual US imports, and a minimum 60% tariff on all imports from China.

Its anticipated US Imports will spike as shippers rush to bring in more goods before there are any further tariff increases. This was evident back in 2018 when Trump first got into office, both rates and volumes doubled between July and November 2018.

Why would this affect the UK market ?

Repositioning of equipment to the US trade lanes.

Shortage and imbalance of equipment

Port congestion at loading ports.

Anticipated higher freight rates

Other considerations for 2025

Ongoing disruption in the Middle East.

Continued rising overheads and labour costs

New Shipping Alliances from February 2025 made lead to some initial disruption whilst carriers come to terms with it.

Higher Fuel and Oil prices due to IMO and cutting emissions

Scrappage of older fleet.

Potential escalation of tension in the South China Sea over ownership of the Spratly Islands.

Will the Red Sea crises end and vessels transit back through the Suez Canal. Will peace in Gaza put to end the action from Houthi rebels?

Many think that once the Red Sea crises ends, overcapacity in the market will push the rates down, possibly to extreme lows.

However, services would take at least 3 months to get back to normal and if vessels pass through the canal again it could lead to bottlenecks and port congestion in Europe. Also the new alliances will take time to run smoothly after their launch in February, expected demand in growth, slow streaming and the scrapping of older vessels all could impact capacity and keep the rates profitable for carriers.

Summary

2025 remains to be an turbulent year and we anticipate that rates will remain high for 2025. Equipment shortages, port congestion and route diversions will continue to limit capacity and keep the rates higher than pre-pandemic levels.

The post Sea-freight Review 2024 appeared first on Pinnacle Freight.

Founded in June 1972 in central Leicester by brothers Martyn, Stuart, and Chris Burrell, Pinnacle International Freight Ltd has grown into a globally recognised logistics solutions provider with bases in the UK and USA, along with a long-established network of global partners.

Headquartered in Broughton Astley, Leicestershire, Pinnacle is known for delivering outstanding worldwide logistics solutions across all industries, driven by a commitment to quality, consistency, and efficiency.

Pinnacle has supported the University of Leicester Space Research Centre in transporting components for various exciting projects, showcasing their commitment to the region’s space sector.

Gavin Newman, Operations Director, said: “Pinnacle has been involved in Space tech logistics for many years, supporting the University of Leicester Space Research Centre with global movement of components for lots of exciting projects, including Swift X-Ray telescope, Catsat soft X-Ray Spectrometer, AstroSat India and the hugely complex delivery of MIRI for James Webb Telescope to NASA.

“We are proud of our Leicester heritage and the development of Space City Leicester. Joining Space Park Leicester aligns with our goal to support and encourage international businesses to base their operations alongside this unique and innovative community.”

Vinay Patel, Head of Commercial and Innovation, at Space Park Leicester said: “With over 50 years of international trade experience, the company will provide advice, guidance, and support for international trade and worldwide logistics within the Space City ecosystem.

“Their on-site presence will give Space Park Leicester an ongoing resource for day-to-day advice and operations as a logistics services provider, including customs matters and project management.

“Being part of the Space City ecosystem is a significant milestone for Pinnacle, marking a new chapter in the company’s history.

“Their long-standing relationship with the University of Leicester Space Research Centre and Space Park Leicester demonstrates a deep understanding of the importance of the work carried out here, our role as a customs site operator for East Midlands Freeport and the broader Space Tech industry.”

Gavin added: “This development strengthens our collaboration and demonstrates our commitment to being an integral part of the long-term, global space sector expansion. Our extensive experience ideally places us as a central point of advice and supply chain support, allowing scientists, researchers, and businesses to focus on their objectives.

“We are proud to extend our heritage to being part of the Space City and its global reputation.”

• For more information about Space Park Leicester visit: https://www.space-park.co.uk/
• Find out more about the University of Leicester

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