EVERGREEN Line has formally joined the five carrier CKYH alliance on the Asia-Europe trade, paving the way for the newly expanded alliance to begin operation in April.
According to a joint statement, Cosco Container Lines, K Line, Yang Ming Marine Transport, Hanjin Shipping and the Taiwanese carrier have agreed in principle to form the CKYHE alliance on March 1, subject to compliance with European Commission competition regulations.
According to Alphaliner data, CKYH’s market share on the Asia-Europe trade reaches 23%, whereas Evergreen’s is around 6%, suggesting the new alliance’s share is well within the European Union’s block exemption for consortia.
The new alliance will begin operations in mid-April with six joint services between Asia and northern Europe and four loops for the Asia-Mediterranean route per week.
CYKHE are suggesting that benefits will include enhanced efficiency and service quality, network coverage, transit times, service frequency and effective environmental stewardship. No mention of any reduction in sea freight rates.
In the CKYHE alliance, Evergreen will contribute 17 vessels, Coscon will contribute 15 ships, Hanjin 13, Yang Ming nine and K Line eight ships.
The expansion is widely seen as a response to the P3 Network, as carriers seek to establish alliances to improve economies of scale and reduce expenses.
Source: Lloyds List