The upcoming contract season brings uncertainty for shippers. Maersk and Hapag-Lloyd are leaving their current alliances, 2M and THE Alliance, in February to form the Gemini Cooperation. The shakeup in ocean alliances will likely impact contract negotiations, says James Hookham, director of the Global Shippers Forum.

Shippers are undecided over which alliance to utilize for long-term contracts and concerned over the possibility of more alliance shifts down the line. Shippers will need to reassess alliances and be ready to work with different carriers, as previous contacts and connections may no longer exist.

Drewry predicts that THE Alliance, with a weaker Trans-Atlantic network, may struggle without a strong partner to replace Hapag-Lloyd. The analyst firm said this might lead to customer loss or aggressive pricing. Despite losing Maersk, MSC is financially strong and is expected to do well with its new vessel investments.

Maersk and Hapag-Lloyd’s Gemini aims for 90% schedule reliability but there are questions whether this is achievable. Maersk CEO Vincent Clerc said he expects disruptions to continue through 2025.

Source: The Loadstar