Ocean cargo/global logistics: Two more carriers add capacity to transpacific

Evergreen and China Shipping will commence a new service later this month linking Los Angeles and Oakland with central and northern China

By ·

Evergreen and China Shipping will commence a new transpacific service later this month linking Los Angeles and Oakland with central and northern China to be called the China/South U.S. West Coast Service 2 (CPS2). This additional service is in response to the booming Asia/U.S. market. Rates for charter have been become more stable, too.

The port rotation is Oakland, Los Angeles, Qingdao, Shanghai, Ningbo, Oakland. The CPS2 service will initially deploy five 4,000-TEU (twenty equivalent unit) vessels by Evergreen Line and China Shipping. Round-trip transit time will be 35 days.

The first vessel to depart will be “Ever Develop” from Qingdao on May 29 and expected to arrive in Oakland on June 13.

Evergreen is already involved in the original CPS service via a slot charter agreement with China Shipping Container Lines (CSCL) on its Asia America Central (AAC) service. Ports on the CPS2 service are covered by the AAC/CPS service

The announcement comes at a time when spot rates are also firming up, noted analysts for Drewry Shipping Consultants.

The spot rate for shipping a 40-foot container from Hong Kong to Los Angeles was bumped up to $2,189 per FEU (forty equivalent units) earlier this month, in the week ended May 3.

The Drewry container rate benchmark for the Transpacific was 10.8 percent, or $213 per FEU, higher than the average rate of $1,976 per FEU recorded in the week ended April 26 and over $2,000 per FEU for the first time since February,

The latest spot rate was 112.8 percent higher than in the same week of 2009, when trans-Pacific rates were still heading down in the rate war that dragged carriers’ bottom lines down as well.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
SaaS Supply Chain Management Systems
A guide to better understanding the market, the software and the benefits
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Digital Evolution: Streamlining Logistics and Supply Chain Operations
In this FREE virtual conference we'll define the challenges facing operations and offer solutions designed to create dynamic, automated networks that offer seamless communication, improved collaborative third-party relationships, and the ability to respond to changes at a moment's notice.
Register Today!
EDITORS' PICKS
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...

Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...