Slot Sharing Agreement

Fee for goods kept in storage facilities for periods under a fixed agreement and which are not included in other agreements. Please click here for more information. The choice of port is generally subject to negotiation and may differ from the election of a particular member. This is particularly controversial for carriers that own large container terminal property, as Vessel`s sharing partners often participate in different container terminals. While alliances have set up joint operational centres to allow for closer coordination, the exchange of good practices within these networks is not a norm and is mainly done on a bilateral basis. Shipping alliances can help carriers offer low prices and broad service coverage through economies of scale and benefits of scale. The high structure of the fixed costs of shipping companies is one of the main arguments in favour of cooperation between shipping companies. Regular weekly service between different ports requires investments in a number of ships. They will sail regardless of their occupancy rate. Cooperation between airlines, for example through a vessel sharing agreement (VSA), can reduce this risk and increase the utilization rate. VSA is not the same as Slot Charter. Slot Charter is when a shipping company buys a certain number of slots from a carrier. VSA is when the airlines in a consortium share their slots relative to the capacity each has contributed.

If one of the members of the consortium wants more than his contribution, he can buy additional slot machines. A ship-sharing agreement is slightly different from that of an alliance, since a ship-sharing agreement is usually devoted to a specific trade route, with conditions specific to that route, while an alliance is global in nature and may encompass many different trade routes, normally applicable under the same conditions. Maersk Line and MSC have announced a 10-year agreement on vessel sharing from 2014. The agreement includes 185 vessels with a capacity of 2.1 million TEUs. Maersk contributes with a capacity of 110 vessels / 1.2 m TEU. MSC expands the alliance of 75 vessels / 900,000 TEUs. It is now the largest in navigation from the entrance to Hamburg South (part of Maersk). 2M serves 44 regular routes between Europe, Asia and the United States. In the first year just, Maersk projected savings of $350 million.

HMM partnered with the 2M Alliance for a three-year period in 2017. In this way, slots can be exchanged and overcapacity can be exchanged jointly or commercially. The quantum of the place each partner receives may vary from port to port and may depend on the number of vessels operated or placed by the different partners under the agreement. I would be happy to have more information about this: 1. Is VSA the same as Slot Charter? What are the financial arrangements between the different companies operating under a VSA? 3. How to deal with a situation in which one of the operators does not have reservations corresponding to his share of accommodation or has more reservations compared to his slot-share? Despite the differences between alliances, most work the same way. The main areas of communication and information exchange cover the same areas as congestion plans, ship allocation and planning, and problem solving. They also openly discuss how to regulate fuel types, environmental issues, operational efficiency and engine failures. Other elements in each maritime alliance are capacity planning, the contribution of each carrier and specific remuneration. . .


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