What is a vessel sharing agreement (VSA)?
An agreement between two or more carriers in which a number of container positions ("slots") equal in space are reserved on particular vessels for each of the participants. The number of slots and thereby space of each party on different vessels on the same route can vary by vessel type and direction, but may also be expressed as each party's capacity use of the vessels employed jointly.
What is the reason behind such an agreement?
The reason for forming a vessel sharing agreement varies from trade to trade but generally speaking this type of co-operation creates operational efficiencies which allows carriers to offer a better service to their customers.
Does this mean I have to work with all VSA partners or just Maersk Line as I am used to? All customers are free to choose the carrier they prefer to work with. Service contracts continue to apply between the parties thereto. Should a customer wish to ship with any other shipping line, then they need to negotiate a contract with such other line before they start shipping with them.
Does this mean that Maersk Line has to agree their rate levels with their vessel sharing agreement partners?
No, a vessel sharing agreement is a technical operation co-operation agreement which does not include any discussion of or agreement upon rates. Rate levels will as usual be driven by the market dynamics and rates are negotiated between each of the carriers and their respective customers.
Will there be any consequently changes to my rates?
The objective of implementing the vessel sharing agreement is to create operational efficiencies and to be able to offer customers competitive services. Any change of rates will purely be on the basis of market dynamics. It is still the fair competition between shipping lines, both those who are a part of the specific vessel sharing agreement and the ones who are not, that determine the rates.
I presume you are doing this to save costs, how will that benefit me?
A vessel sharing agreement allows carriers to provide a service which they could or would not otherwise offer. Also, a solid cost base will always help any company to improve its long term sustainability and encourage further investments. All customers will benefit from investments that further create opportunities in global commerce.
Will all VSA partners apply the same BAF?
The BAF calculation is a formula which takes into account the cost of bunker on the specific trade. Each shipping line will continue to independently apply their BAF assumptions.
The new Maersk Line BAF is based on a.o. average ML bunker consumption, how will you calculate consumption on a VSA string? The Maersk Line bunker calculation can be drilled down to calculate basis unit cost. The VSA will not affect the cost on bunker and hence the BAF for the customers.
Can Maersk Line freely add capacity in peak seasons if they wish to do so outside the scope of the VSA agreement?
In the event of lack of capacity we expect that additional vessels will be added to the joint service.
Will there be restrictions to Maersk Line allocation on VSA partners' ships?
All vessel sharing agreements limit the ability of the partners to load containers on the vessels used for the operation of the joint service. This can be based on vessel intake, the cargo weight, the number of available reefer plugs, the draft restrictions on ports being called, etc.
I am served via a feeder port; will my pre-carriage/on-carriage change?
The pre-carriage and on carriage will only be affected in a situation where the feeder rotations remain the same and the rotation of mainline vessels change. Maersk Line will endeavour to change the feeder network around the mainline vessels if possible. This will ensure good connections and avoid disruptions to our customer supply chain.
How will customers be affected if there are any claims?
The claims settlement does not change.
Is there any legal implication to my bill of lading if Maersk Line loads my cargo on a vessel that belongs to a VSA partner? No, Maersk Line will still be held liable for the cargo by virtue of issuing the B/L.
The reason for forming a vessel sharing agreement varies from trade to trade but generally speaking this type of co-operation creates operational efficiencies which allows carriers to offer a better service to their customers.
