Taipei, April 21 (CNA) Evergreen Marine Corp. (長榮海運), the largest shipping company in Taiwan, has signed a memorandum of understanding with its three foreign counterparts to set up a shipping alliance.
Under the MOU, Evergreen Marine intends to team up with France-based CMA CGM, China's COSCO Container Lines Co. (中國遠洋) and Hong Kong's Orient Overseas Container Line Ltd. (東方海外) to form the Ocean Alliance, which is expected to replace the 2M Alliance to become the world's largest shipping alliance.
After topping the 2M Alliance, which was formed by Maersk Line and Mediterranean Shipping Co., to become the world's No. 1 shipping partnership, the Ocean Alliance is expected to take a more than 34 percent share of the global shipping market, analysts said.
Evergreen Marine said that the Ocean Alliance is expected to strengthen the ability of its members to offer competitive products and comprehensive services covering the Asia-Europe and Asia-Mediterranean trade routes.
In addition, the partnership is expected to provide services for the Asia-Red Sea, Asia-Middle East, Trans-Pacific, Asia-North America East Coast and Trans-Atlantic trade routes, Evergreen Marine said.
Evergreen Marine said that the Ocean Alliance is expected to start up operations in April of next year after a contract for the Taiwanese shipping company to join the CKYHE Alliance, which includes Yang Ming Marine Transport Corp. (陽明海運), another major shipper in Taiwan, expires.
Evergreen Marine joined the CKYHE Alliance in 2014 and the expiration of the contract means the Taiwanese firm will withdraw from that alliance.
The four members of the Ocean Alliance are expected to provide a fleet which will be organized by 350 container vessels in an initial phase, and its worldwide deployment, which will use Asia as a base, is expected to cover more than 40 routes globally to connect Europe and North America, Evergreen Marine said.
"Joint service cooperation is an essential part of our own strategic planning. This new alliance enables us to optimize fleet deployment and offer competitive services to meet customers' changing demands." Evergreen Marine President Lawrence Lee (李孟傑) said in a statement.
Evergreen Marine said that the initial phase of the Ocean Alliance will continue for five years, and the members have started their preparations work to seek regulatory approval for operations. Shares of Evergreen Marine gained 0.42 percent to close at NT$11.85 (US$0.37) on the Taiwan Stock Exchange Thursday.
(By Pan Chi-i and Frances Huang)
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