Subscribe to our free, weekly email newsletter!


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


May 27, 2010

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.

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!

Recent Entries

NRF's Jonathan Gold explains that the past year was replete with disruptions, slowdowns and partial shutdown, which can no longer be the norm, saying ports and dockworkers must adapt to ensure they provide shippers with the predictability and stability they need.

Last month, I gave a presentation to a group of senior transportation and supply chain executives. It was entitled “Predictable Surprises,” because it addressed how transportation and supply chain professionals can eliminate unpleasant surprises by looking at and evaluating issues in the transportation industry, and projecting how those issues will affect their companies.

The Port of Los Angeles (POLA) and the Port of Long Beach (POLB) said this week that they have formally established working groups, which they said will aim to seek new supply chain efficiencies, and focus on various aspects of port operations, including peak operations and terminal optimization in an effort to augment the San Pedro Bay port complex.

A month ago, the Shippers Conditions Index (SCI) from freight transportation consultancy FTR indicated that shippers might be traveling on a rocky road in the coming months. And one month later it appears those concerns appear to have been confirmed.

The American Association of Port Authorities (AAPA) had nothing but praise for the Senate passage over the past weekend of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015).

Article Topics

News · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA