Ocean Alliance faces notable ETS cost disadvantage
NewsSea-Intelligence found MSC’s network design nearly halves reportable sailing distances, giving it a cost advantage in ETS expenses over Ocean Alliance’s modest 7% reduction.
Jansen highlighted the network’s design, where two or three calls are made on both ends of origin and destination, reducing the likelihood of disruptions.
Hapag Lloyd’s CEO, Rolf Habben Jansen, believes that the Gemini Cooperation, formed with Maersk, is well-equipped with just two shipping lines, rejecting the idea of expanding to a “triplet alliance.”
Speaking recently at TPM24 by S&P Global in Long Beach, California, Jansen emphasized the effectiveness of their unique hub and spoke model, stating, “We didn’t choose it for nothing… This is going to be quite different than the way that some of the other cooperations work and if you want to make them work, then to do that with two is probably enough.”
As Supply Chain Dive reported, Jansen explained that their alliance with Maersk operates on a hub and spoke structure, a proven model in transportation, ensuring better asset utilization and schedule reliability.
Jansen highlighted the network’s design, where two or three calls are made on both ends of origin and destination, reducing the likelihood of disruptions. This system resembles airfreight logistics, where cargo is consolidated at hubs for efficiency.
Regarding infrastructure, Jansen mentioned their focus on port terminals to accommodate the hub and spoke network’s growth. While he believes the current infrastructure is adequate, ongoing investment will be necessary as the model matures and demands more capacity.