Maersk Line agrees with CMA-CGM for new vessel sharing

Maersk Line is looking to bolster its trans-Pacific trade through a new Vessel Sharing Agreement with CMA-CGM.

Following the success of a previous vessel sharing agreement, Danish carrier Maersk Line announced the establishment of a new Vessel Sharing Agreement (VSA) with French-based CMA-CGM utilizing both the Panama and Suez Canals, which will commence in May 2009. This new VSA follows almost a year of successful cooperation between the two companies in a trans-Pacific agreement, and represents further capacity adjustments in the trans-Pacific trade.

Demonstrating a new perspective on service to North America, Maersk Line and CMA-CGM provide two strings with new services. The scope of the agreement includes the Far East to the US east coast and Far East to the Pacific Northwest.

There will be two strings on this VSA, one taking advantage of the scale benefits of a Suez Canal crossing, the other utilizing the Panama Canal.

The first string, known as the TP3, will be a pendulum between the Far East, the Pacific Northwest and US east coast. It will serve an eastbound port rotation of Shanghai, Hong Kong, Yantian, Singapore, Newark, Norfolk, with westbound calls at Singapore, Hong Kong, Yantian, and Shanghai via the Suez Canal. With both an Eastbound and Westbound call at Singapore and deep water capacity at the east coast American ports of Norfolk and Newark, this string provides opportunities for Maersk Line and CMA-CGM customers.

The second segment of the pendulum service will consist of a revised TP9, which will offer access to multiple Asian markets with calls at Singapore, Hong Kong, Yantian, Shanghai and Busan with improved access to the Pacific Northwest. These services will include 13 vessels with 6,400 TEU capacity. Seven of these vessels will be operated by Maersk Line and the remaining six by CMA-CGM. Services will commence with a first sailing on May 14, 2009 out of Asia.

A second string, known as the TP10, will service an eastbound rotation of Ningbo, Shanghai, Qingdao, Busan, Balboa, Savannah, Newark and Miami. The westbound offering will call at Balboa, Ningbo, Shanghai and a return to Qingdao. This string will consist of eight 4,300 TEU vessels, four of which will be operated by each carrier.

This service represents unprecedented, timely access to multiple Chinese markets combined with the convenience of all-water routing to east coast ports in North America. An additional call at Balboa will further provide a diverse product to South American and Central American customers. This service will commence with its first sailing on May 9 2009 out of Asia.

These changes are made in anticipation of a more difficult trading environment in 2009 and a part of Maersk Line's efforts to further rationalize deployment. These changes result in an 8% net reduction of capacity for Maersk Line between the Far East and North America. <Korea Shipping Gazette>