Many of the major shipping lines involved in the Asia-Europe and Asia-Mediterranean trades are cutting capacity on the East-West routes as the global financial storm hits the high seas resulting in cargo cutbacks. It may be cause for concern that with this reduction in capacity future demand could exceed supply leading to higher rates and rate restoration plans.
Maersk will temporarily suspend its Asia-Europe 8 (AE8) service that covers China-North Europe this month, a move that will take 7,600 TEUs of weekly capacity out of the trade.
The New World Alliance lines - APL, Hyundai and MOL - have confirmed they intend to merge two services, the China Europe Express (CEX) and South China Europe Express (SCX), which will take around 6,000 TEUs of weekly capacity out of China-North Europe trade. The CKYH Alliance lines - Cosco, "K'' Line, Yang Ming and Hanjin - are meeting to decide what measures to take to reduce capacity. The alliance confirmed, "the move will be substantial".
The Grand Alliance lines - NYK, Hapag-Lloyd, OOCL and MISC - will drop one of their five joint Asia-North Europe loops in February 2009. CMA CGM has dropped two services on the Asia-Mediterranean trade and Zim has dumped one service, resulting in a cutback of around 10,000 TEU of weekly capacity in that market.
For further information contact our UK Ocean Development Manager, DAVID BRYANT
