More shipping lines have axed Asia-North America services as the battle to push up rates on the transpacific trade lane steps up a gear.
Late last week, MSC, Maersk Line and CMA CGM announced they had cancelled their annual Jaguar service this year.
The joint peak-season extra service between Shanghai, Ningbo, Los Angeles and Shanghai, operated by five Maersk vessels with an average size of 6,500teu, was due to be launched at the end of May and had already been postponed. Last week the lines said the service would now not run until May 2012.
Also last week, Hainan Pan Ocean Shipping and TS Lines decided to scrap their joint TP1 service, which had been launched in May with four 3,000teu ships. A senior executive at TS Lines said it has made the decision because of losses.
The move reduced the number of joint transpacific services offered by the carriers from three to two.
In June, the New World Alliance – APL, Hyundai and MOL – announced the suspension of its Pacific Southwest service, which deployed five ships with capacity of around 4,600teu, on 14 July.
And CSAV suspended its 11-vessel transpacific service, citing declining freight rates and doubts over future demand levels.
In April, The Containership Company decided to cease all its operations on the transpacific trade because of pressure on freight rates, weak volumes and increasing oil prices.
The service cuts have followed carriers’ decision to delay implementation of peak-season surcharges (PSS).
According to French consultancy Alphaliner, transpacific carriers recently pushed back the launch of the PSS for the third time.
The Transpacific Stabilisation Association (TSA) rcommended PSS was originally scheduled to take place on 15 June, but was pushed back to 1 July, 15 July and is currently slated to start on 1 August.
Damian Brett | Mon, 18 Jul 2011, IFW News