Ocean cargo: Grand Alliance enhances trade lane with “eco-speed” service

Patrick Burnson, Executive Editor -- Logistics Management, 6/11/2008

SAN FRANCISCO—A leaner, “greener” ocean borne component linking Japan to north Europe has been introduced by carriers comprising the Grand Alliance.

 “The implementation of a ninth 6,200 TEU (twenty-foot equivalent units) vessels to its Japan–North Europe (EU1) service completes an environment-friendly program aimed at lowering emissions,” said Alliance spokesmen in a statement.

 A similar move was made earlier this year by the Alliance in its North Europe–Far East services.

 The Grand Alliance, formed in 1998, is the leading integrated consortium in global container shipping. Its members include Hapag-Lloyd (Germany), MISC Berhad (Malaysia), NYK (Japan), and OOCL (Hong Kong).

 “By adding additional vessels, these services can operate at ‘ecospeeds’ that will reduce emissions by 20–30 percent,” added spokesmen.

 The four Alliance partner lines have made substantial investments for the additional ships, which have been phased into their Europe–Asia loops.

 The port coverage of the EU1 service remains unchanged. Higher schedule contingencies have been allocated to compensate for delays in congested ports, which occur as a result of the high volume in global container traffic.  This, said spokesmen, allows the Alliance to improve schedule reliability without harming the environment.

 According to industry analysts, recent flurries of carrier rationalizations have removed some vessels from major trade lanes thereby permitting them to be used them to serve niche markets.

 “While this certainly good for the environment, it signals another move by carriers to do what can to save on bunker fuel costs,” said Jon Monroe, president of Monroe Consulting in Shanghai.

 In an interview with LM, Monroe added that this is good for shippers, as it provides them with capacity and volume that might not otherwise be placed in smaller trade arteries.