Global container shipping is one of the most capital-intensive and competitive industries in the world. Moving over 80% of international trade by volume, shipping lines face enormous costs related to vessels, fuel, port infrastructure, and compliance with environmental regulations. To manage these pressures while maintaining reliable global coverage, many carriers participate in shipping alliances.
What Are Shipping Alliances?
Shipping alliances are cooperative arrangements between ocean carriers that allow them to share vessels, port calls, and schedules on specific trade routes. Unlike mergers or acquisitions, alliance members remain independent companies, competing commercially while coordinating operations.
Alliances primarily operate in the container shipping sector, where economies of scale are critical. By pooling capacity and resources, carriers can offer more frequent sailings, broader route networks, and improved reliability without individually deploying additional ships.
As of the beginning of 2025 there are three major global shipping alliances in the world.
Why Shipping Alliances Exist
The rise of shipping alliances is largely a response to structural challenges in the industry:
- High Capital Costs
Modern container ships can cost hundreds of millions of dollars each. Alliances allow carriers to spread risk and maximize vessel utilization. - Overcapacity and Volatile Demand
Fluctuations in global trade—caused by economic cycles, pandemics, or geopolitical tensions—can leave ships underutilized. Alliances help carriers adjust capacity more efficiently. - Customer Expectations
Shippers demand frequent sailings, wide port coverage, and competitive pricing. Alliances make it possible to meet these expectations without duplicating services. - Operational Efficiency
Shared schedules and terminals reduce redundant port calls, fuel consumption, and emissions, helping carriers meet cost and sustainability goals.
How Shipping Alliances Work
Shipping alliances typically involve agreements such as:
- Vessel Sharing Agreements (VSAs): Members jointly operate ships on specific routes.
- Slot Exchanges: Carriers trade space on vessels instead of deploying their own.
- Coordinated Schedules: Aligning sailing times to improve network efficiency.
Importantly, alliances do not usually involve joint pricing or revenue sharing. Each carrier markets and sells its own cargo space independently, which helps alliances comply with competition laws in many jurisdictions.
Major Global Shipping Alliances (Post-2025 Restructuring)
As of early 2025, the global container shipping alliance landscape was reorganised. The main alliances currently are:
1. Ocean Alliance
Members:
- CMA CGM
- COSCO Shipping Lines
- Evergreen Marine
- OOCL (Orient Overseas Container Line)
This is the largest alliance in container shipping, operating across key global trade lanes (Asia–Europe, Asia–North America, Transpacific, etc.). It was first formed in 2017 and its cooperation agreement has been extended through at least 2032.
2. Premier Alliance
Members:
- Ocean Network Express (ONE)
- HMM (Hyundai Merchant Marine)
- Yang Ming
Founded in February 2025, this alliance evolved from the previous THE Alliance after some carriers reorganised their partnerships. It focuses on the same major trade routes (Asia–Europe, Transpacific, and increasingly Asia–Middle East).
3. Gemini Cooperation
Members:
- Maersk
- Hapag-Lloyd
A newly formed strategic partnership launched in January 2025, combining major capacities from two huge carriers. The Gemini Cooperation aims to optimise services across major global routes and improve service reliability and sustainability.
Benefits of Shipping Alliances
For Carriers
- Lower operating costs
- Better asset utilization
- Reduced financial risk
- Ability to deploy ultra-large container vessels efficiently
For Shippers
- More frequent sailings
- Access to wider port networks
- Greater schedule flexibility
- Potentially lower freight rates during competitive periods
For the Environment
- Fewer partially filled ships
- Optimized routes and port calls
- Lower fuel consumption per container transported
Criticisms and Challenges
Despite their advantages, shipping alliances are not without controversy.
- Market Concentration
As alliances grow, concerns arise about reduced competition and market power over freight rates and capacity decisions. - Service Reliability Issues
Complex coordination among multiple carriers can lead to schedule disruptions, blank sailings, or confusion over responsibility when delays occur. - Regulatory Scrutiny
Competition authorities in the EU, US, and Asia closely monitor alliances to ensure they do not function as cartels or restrict fair competition. - Limited Choice for Shippers
While there may be many shipping brands, alliance structures can mean fewer genuinely independent service options on major routes.
The Future of Shipping Alliances
The role of shipping alliances is likely to remain significant, but their structure may evolve. Key factors shaping the future include:
- Decarbonization pressures, requiring massive investment in greener vessels and fuels
- Digitalization, improving coordination and transparency across alliance networks
- Geopolitical shifts, which may alter trade lanes and alliance strategies
- Regulatory changes, potentially tightening oversight or redefining acceptable cooperation
Some analysts predict more flexible or modular alliance arrangements, while others anticipate further consolidation if smaller carriers struggle to compete.
Conclusion
Shipping alliances have become a defining feature of modern container shipping. By enabling cooperation without full integration, they help carriers manage costs, improve efficiency, and serve global trade more effectively. At the same time, their scale and influence raise important questions about competition, resilience, and fairness in international logistics.
As global trade continues to evolve, shipping alliances will remain at the centre of debates about how best to balance efficiency with competition in one of the world’s most essential industries.