Hapag-Lloyd has exited its tripartite cooperation agreement with Mediterranean Shipping Company (MSC) and Ocean Network Express (ONE) on the shipping route from Asia to the eastern coasts of South America. This change in the cooperation structure has occurred due to a revision of transportation agreements among the three companies.
Planning for the New Voyage
The first voyage under the new agreement is scheduled for April 3, 2027, departing from the Port of Shanghai. With Hapag-Lloyd's exit, MSC has announced that it will add additional vessels to compensate for the capacity loss from Hapag-Lloyd on this route. No specific information has been provided regarding the number of new vessels and the total capacity planned.
Continued Operations of ONE
ONE has emphasized that it will continue its operations under the East Coast South America Express 1 (SX1) brand and will maintain weekly voyages between major export centers in Asia and the main container gateways in South America. These new services will include connections between the ports of Shanghai, Ningbo, Shekou, Hong Kong, and Singapore with Brazilian ports such as Santos, Paranaguá, Navegantes, and Rio Grande, as well as Montevideo and Buenos Aires.
End of Tripartite Cooperation
Hapag-Lloyd's exit marks the end of the long-term cooperation among these three companies on this route. This collaboration began in late 2018 when MSC, ONE, and Hapag-Lloyd came together to expand their services to the region. At that time, ONE added additional weekly services to enhance coverage between the two regions. Now, with the revision of the cooperation structure, only MSC and ONE will continue their collaboration while Hapag-Lloyd exits the agreement.
These changes in the cooperation structure could have significant impacts on the shipping and transportation market in these regions. Despite ONE's continued operations and the addition of new vessels to MSC, Hapag-Lloyd's exit is likely to lead to changes in competition and pricing on this route.
