VESSEL SHARING AGREEMENT
A Vessel Sharing Agreement (VSA) is an agreement between shipping lines to share vessel space in order to meet demand on specific trade lanes. The space available to each partner may differ from port to port and is controlled by the individual input of each company.
SHIPPING ALLIANCES
A VSA differs from a Shipping Alliance in that a VSA is commonly dedicated to a specific trade route with terms and conditions specific to that route, while an alliance is far more global in nature and may include several different trade routes under the same terms.
Alliances make it possible for carriers to reduce overcapacity by sharing vessels, however, they are prohibited by U.S. regulators from jointly marketing or selling services. Despite their partnership, alliances, as well as carriers within each alliance, are still known to compete with one another.
THREE MAJOR SHIPPING ALLIANCES
Currently, there are three main shipping alliances and together they account for 85% of the shipping market. These Alliances include:
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