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Following on from the decision announced last month to team up with CMA CGM and China Shipping Container Lines in an east-west alliance dubbed the ‘Ocean Three’, United Arab Shipping Company (UASC) has reached a further alliance agreement, this time with the German carrier Hamburg Süd.
Initially, Hamburg Süd and UASC have agreed to cooperate on a selected number of their core trades. Hamburg Süd will enter the Asia – North Europe and Asia – US trades in December 2014 and January 2015 respectively, while UASC will have access to services linking Asia, North Europe and the Mediterranean with the East Coast of South America from mid-2015. Initially, the cooperation will be in the form of slot exchanges, although it is envisioned that joint vessel deployment opportunities will be explored in due course. Further discussions between UASC and Hamburg Süd about cooperating within other geographic regions are also under discussion.
The agreement follows months of talks between the two companies about their customers’ business needs, key growth areas, and operational requirements. The need to address logistical imbalances was also a key driver behind the agreement, UASC states.
UASC is investing heavily in new tonnage, with eleven 14,000 teu and six 18000 teu vessels on order, and is seeking ways of expanding its service network to help fill up these larger vessels as they come on stream. The South American container market is growing rapidly and this deal with Hamburg Süd, which has been traditionally very strong in this sector, will allow it to offer its customers a cost-effective means of accessing opportunities in Brazil and Argentina especially.
The idea is that the cooperation will enable Hamburg Süd and UASC to complement each other’s key services and networks, offering both lines’ customers a more comprehensive global reach and reliable services without incremental investment in new tonnage. Detailed service announcements will be provided by Hamburg Süd and by UASC shortly.
