Alphaliner: Another Service Cut from Far East – North America Trade
- Business & Finance
This year’s weak market conditions in the Far East – North America transpacific trade have claimed another casualty as the French shipping company CMA CGM, Germany-based Hamburg Süd and United Arab Shipping Company (UASC) decided to withdraw their joint Far East – USEC Vespucci/ APNE/NEU 1 service, according to Alphaliner.
The companies now plan to replace the Transatlantic leg of this pendulum service by a new North Europe-USEC service.
The loop’s final sailing from the Far East is planned from Qingdao on August 3, with the three carriers to offer alternative all-water services through slot arrangements.
The decision on the Far East – USEC service, which came during the traditional summer peak season, marks the withdrawal of the third transpacific service involving CMA CGM and UASC this summer, Alphaliner said. Earlier suspensions included the Ocean 3’s Far East – USEC Manhattan Bridge/AAE 3/AUC-2 and the Far East – USWC Bohai/AAC/AWS-2 services.
CMA CGM earlier abandoned its plans to deploy 17,800 TEU ships on the Asia – US West Coast route and continued operating the 11,300 TEU vessels. Furthermore, the G6 carriers said that the suspension of their Far East – USWC service CC1, implemented in mid-June, would be continued until further notice.
These moves are expected to reduce total weekly capacity on the Asia to North America corridor to 429,000 TEU by September, marking a decline of 4% from the corresponding period of last year, according to Alphaliner.