7 September 2023 (Lloyd's List) - ISRAEL-based container line Zim has boosted it ties with Mediterranean Shipping Co following the signing of a new “operational collaboration agreement” that will see the two carriers share vessels and slots on a number of trades serving the Mediterranean, northern Europe and the Indian sub-continent.
The announcement adds to the agreement in the past month to share resources on a number of services ex-Asia to Australia and New Zealand.
“This important operational collaboration with MSC, a trusted partner and industry leader, marks a mutually beneficial arrangement, delivering cost efficiencies for both carriers, while upholding the highest standards of service and reliability for our customers,” said Zim chief executive Eli Glickman.
“Capitalising on this opportunity with MSC will improve efficiencies in our fleet and is consistent with our focus on taking proactive steps amidst continued near-term headwinds in the container shipping market.
He added that the co-operation would benefit Zim both operationally and financially, and was a “testament to our agility”.
The additional trades announced will cover services between India and Türkiye and Israel, and between northern Europe and Türkiye and Israel.
“The service restructuring is aimed to ensure improved service reliability and offers seamless connections to other Zim services operating in Asia and the Mediterranean,” the company said.
Zim and MSC have had a long relationship that includes Zim’s ties to the 2M alliance. Last year, Zim and the 2M agreed to extend parts of their co-operation agreement, but Zim also decided to go it alone on one of the routes they formerly shared. Zim kept its slot and vessel sharing agreement with 2M on the Asia-US east coast and Asia-US Gulf coast trades, but cut its ties on the Asia-Med and Pacific northwest trades.
Zim first entered into the agreement with 2M in 2018, forming a “strategic co-operation” deal on five loops to the US east coast. It was later boosted to include the Pacific northwest and Mediterranean services.
Following HMM’s announcement that it was leaving its associate membership of 2M to become a full member of The Alliance, Zim also picked up a shared service to the US Gulf. But with the 2M alliance due to dissolve at the beginning of 2025 and with market conditions becoming more challenging again, Zim is looking to shore up its relationship with its much larger partner.
“Our agile strategy enabled us once again to promptly adapt to changing market dynamics, ensuring that we continue to best meet our customers’ needs,” Glickman said.
