The market share of independent container shipping services on major east-west deep-sea trades has been on the rise in recent months, nearing levels observed during the pandemic. New data from Sea-Intelligence Consulting reveals this significant shift, underlining the dynamic nature of global shipping and the critical need for advanced supply chain visibility software. Such technology offers real-time data insights, aiding Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) in making pivotal business decisions.
Sea-Intelligence Consulting reports that nearly one-third of services on the transpacific trade over the next three months are anticipated to be provided outside traditional vessel-sharing agreements. This includes express services independently operated by alliance-member carriers. “The Asia-North America West Coast tradelane is poised to see a sharp increase in the capacity share of non-alliance services in the coming months,” stated Sea-Intelligence chief executive Alan Murphy. “The data shows that nearly 30% of the deployed capacity on the tradelane is scheduled to be offered on services operated outside of the alliance structures.”
Key Developments and Statistics
This trend extends beyond the transpacific trade. A similar pattern is emerging on the Asia-North Europe tradelane, although it is less pronounced on the Asia-North America East Coast and Asia-Mediterranean routes. “On Asia-North Europe, if the current 12-week outlook holds, we will see record levels – touching 12% – of non-alliance capacity,” Murphy noted.
Among these independent services is MSC’s new Asia-North Europe Britannia service, which will make its first European stop at the UK port of Liverpool. Additionally, Ellerman City Lines is returning to the trade with several China-UK sailings scheduled for this month and the next, having initially entered the trade during the pandemic demand surge.
Market Dynamics and Future Prospects
Murphy highlighted that the surge in demand for goods, coupled with rising spot rates, has driven a significant increase in non-alliance capacity. This trend was evident even in traditionally alliance-dominated trades like Asia-North Europe, which saw the entry of several niche carriers offering standalone services. Although many of these carriers exited the trade when spot rates fell in late 2022 and early 2023, the market has once again shifted in their favour.
“Across the main east-west trades, it is clear that the main driver of the non-alliance share is spot rates; a sharp increase during the pandemic triggered a sharp increase in non-alliance services – and vice versa when spot rates collapsed in the second half of 2022. This pattern is now repeating, as the sharp spot rate increases seen in recent months again coincide with an increase in non-alliance services,” Murphy explained.
However, a more fundamental change is expected next year with the conclusion of the Maersk and MSC 2M partnership. MSC, which now controls around 20% of global container shipping capacity, will operate entirely outside the formal alliance structure, signalling the end of an era where east-west trade was predominantly controlled by three vessel-sharing agreements.
The Importance of Real-Time Data Insights
Given these market shifts, the implementation of supply chain visibility software becomes indispensable. By providing real-time data insights, this technology supports BCOs and LSPs in making informed, business-critical decisions. In the face of dynamic industry changes, having accurate and timely information is essential to mitigate potential impacts on supply chains. This comprehensive approach highlights the necessity of leveraging advanced technology to enhance operational resilience and efficiency in a rapidly evolving market.
In conclusion, the resurgence of independent shipping services underscores the fluidity of global trade and the vital need for cutting-edge visibility tools. As the industry navigates these transformations, stakeholders equipped with real-time data insights will be better positioned to succeed in this competitive landscape.