FMC: Premier Alliance is about to take effect

Source：CNSS Release Time：2025-02-08 Number of views：

On The evening of February 6 local time, the United States Federal Maritime Commission (FMC) announced that the Premier Alliance, a new ship and route sharing Alliance formed by Hyundai Merchant Marine (HMM), Ocean Network Shipping Company (ONE) and Yangming Shipping, will officially take effect on February 9, replacing the previous Alliance. The three companies said they would continue to work together even without Hapag-Lloyd, their former partner.

Premier Alliance is about to take effect

On October 28, 2024, the agreement was submitted to the FMC for approval. On November 5, the FMC requested additional information to complete an economic analysis of the competitive effects of the agreement, and the review process was postponed. On December 26, FMC confirmed the completion of the supplementary response. Under the statute, the commission has a 45-day review period, at which time the agreement will automatically take effect if there is no objection. As with the Maersk/Hapag-Lloyd Gemini Alliance review, the FMC did not question the capabilities of the agreement, but required the alliance agreement to adhere to its strict standards of ongoing monitoring.

It is worth mentioning that shortly before this review was approved, the Gemini Alliance officially set sail. The alliance is believed to be reshaping working relationships across the industry, with far-reaching implications for the industry.

Premier Alliance covers ship sharing, space exchange, and discussions and decisions on the size, number and characteristics of operating ships. In September 2024, the three companies decided to deepen their cooperation while entering into a separate agreement with Mediterranean Shipping Company (MSC).

HMM, ONE and Yangming Shipping plan to increase services on major routes and invest in new vessels to make up for the loss of capacity. HMM will reopen transatlantic routes that were discontinued in 2018, and ONE announced that it will open new routes to the East coast of South America and India.

Premier Alliance

Premier Alliance's predecessor, THE Alliance, was founded in 2016 as one of the three major alliances in the industry and began operations in April 2017. According to THE companies involved, THE Alliance involves 260 vessels, calling at 82 ports and covering 31 services on major trade routes. The alliance renewal is expected to bring development opportunities for the three companies in the new market environment, and will also have a non-negligible impact on the global shipping market pattern.

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