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The Benefits of an Ocean Alliance

An ocean alliance, also known as a shipping alliance, is a collection of maritime freight characters that combine their resources to offer an enormous fleet with global coverage. The largest shipping carriers form today’s 3 ocean alliances. Participating in one of the three shipping alliances offer a number of benefits to both customers and carriers. In this article, we’ll discuss the benefits of ocean alliances.

Reduce operational cost

By pooling shipping resources, freight carriers can reduce overall operating costs. That’s because ocean alliances allow shipping companies to share their large fleets, coverage area and slots on their vessels. Shipping alliances also allow companies to purchase mega-ships, which allow for greater shipping capacity. Typically, many carriers would not be able to afford this expansive reach and capacity if not for the operational cost-benefit of an ocean alliance.

Increase capabilities

Customers benefit from shipping alliances because large carriers have more coverage. This translates to increased shipping capabilities globally, making it easier for customers to order products and have them delivered to their homes or businesses.

Offset artificial demand

If every large carrier increased its own fleet of vessels to reproduce the coverage and capacity offered by a shipping alliance, there would be an artificial surge in demand for shipping vessels, negatively offsetting the economy. Although this still happens to some extent when shipping alliances purchase mega-ships, it’s not to the extent it would be if they did so individually.

The largest carries benefit in many ways by being involved in shipping alliances. Being a part of a shipping alliance helps to reduce the carrier’s operational costs, increases their coverage and keeps them prepared for potential economic shifts. For more information on how shipping alliances are helpful, read our blog.

Contact one of our logistic experts today to learn how an alliance with ClearFreight can help your business.

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