Slot exchanges will allow each carrier to expand their scope of service.
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United Arab Shipping Company and Hamburg Süd announced Wednesday they have signed a global cooperation agreement.
“This cooperation with Hamburg Süd enables access to the South America trades and illustrates our ambitious approach to enhance geographic coverage,” said Jørn Hinge, president and chief executive officer of UASC.
The announcement comes just weeks after United Arab Shipping announced it was also entering into another major alliance — the so-called Ocean Three vessel-sharing agreement with CMA CGM and China Shipping, which focuses on the major East-West trades of the Far East to North Europe and the Med and the Far East to North America.
It also follows discussions last year between Hamburg Süd and Hapag-Lloyd about a possible merger.
The companies said their agreement “came after a series of discussions focused on the companies’ respective customers’ business needs, key growth areas, and operational requirements. The need to address logistical imbalances was also a key driver behind the agreement.”
Ottmar Gast, chairman of the executive board of Hamburg Süd, said the “cooperation will enable Hamburg Süd and UASC to complement each other’s core services and networks, offering both lines’ customers a more comprehensive global reach and reliable services without incremental investment in new tonnage. Hamburg Süd and UASC customers will benefit from the companies’ deployments featuring highly efficient and environmentally friendly vessels.”.
The companies said Hamburg Süd will enter the Asia-North Europe and Asia-U.S. trades in December 2014 and January 2015, respectively, while UASC will enter the Europe-South America East Coast and Asia-South America East Coast trades effective from the middle of 2015.
Initially, they said the cooperation will be in the form of slot exchanges.
“Vessel deployment opportunities will be explored in due course. Further geographic scope for cooperation is currently under discussion. Both carriers also intend to explore other areas of cooperation going forward,” the companies said in a joint statement, adding that detailed service announcements will be provided “shortly.”
