Difference Between Alliance and Vessel Sharing Agreement

Though there are so many container companies for you to choose from, the choices are limited when you want to choose vessel sharing partners and carrier alliances. There is a considerable difference between vessel sharing agreement and alliance. Now let us look into the difference.

As the name says, Vessel Sharing Agreement (VSA) is when member carrier allows to share space with each other. The prices are fixed for every shared and allocated space. Here, the member carrier just shares space and does not operate the trade routes. On the other hand, in the alliance, member carriers not only share space but also collaboratively operate and plan on service routes. They can also introduce new services and control capacity.

It is quite obvious that alliances dominate much than vessel sharing agreements. The former’s decision can significantly affect the customers and individual carriers. These days, there are many VSA and alliance operating at the trans-pacific market.

Many companies are finding difficult to choose between alliance and VSA. Depending on the quantity of goods and nature of the business, you can choose the number of alliances and VSA. There are so many resources on the Internet, where you could find effective ideas and tips on this matter.

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