New Premier Alliance Agreement for HMM, ONE, and Yang Ming Takes Effect
The U.S. Federal Maritime Commission reported tonight, February 6, that the new alliance between HMM, Ocean Network Express (ONE), and Yang Ming to share vessels and routes will take effect on Sunday, February 9. The Premier Alliance replaces the former working arrangement known as The Alliance with the companies emphasizing their commitments as they prepare to proceed without former partner Hapag-Lloyd.
The agreement was originally filed for approval with the FMC on October 28, 2024. The FMC however quickly responded and reported on November 5, 2024, that it had requested additional information. The review process was delayed to collect the data which the FMC said was necessary for completing an economic analysis of the competitive effects of the agreement.
The FMC deemed the responses complete on December 26. The regulations then give the commission 45 days to review a newly filed agreement or the responses before the agreement automatically goes into effect. As with the review for the Gemini Alliance between Maersk and Hapag-Lloyd which faced a similar delay, the FMC said it lacked the ability to challenge the agreements, but that alliance agreements are subject to the strictest standards for ongoing monitoring by the commission.
The approval comes just days after Gemini launched and the first vessels transitioned to the new route system for Maersk and Hapag. The companies look to shake up the industry and their cooperation is reshaping working relations across the entire sector.
The new alliance covers issues such as vessel sharing, exchanging vessel slots, and the ability for the three companies to discuss and agree on issues such as the size, number, and operational characteristics of vessels operating under the agreement. The three companies said in September 2024 that they had determined to continue their working relationship and enhance it including a separate agreement with MSC Mediterranean Shipping Company.
HMM, ONE, and Yang Ming have also reported they will be increasing service on key routes and adding new vessels to make up for lost capacity. HMM, for example, is returning with a trans-Atlantic route after having ended its prior service in 2018. ONE has also announced new services to the East Coast of South America and India.
The Alliance was launched in 2016 as one of the three working relationships in the industry. It started operations in April 2017. The companies reported it involved 260 ships, calls at 82 ports, and covered 31 different services on the major trade routes.