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

For the fourth quarter of 2014, UPS said it anticipates adjusted diluted earnings per share of roughly $1.25, with full-year 2014 adjusted diluted earnings per share at $4.75, which represents a 3.9 percent annual gain over 2013’s adjusted earnings per share of $4.57, with full-year 2014 diluted earnings pegged at around $3.28 per share, which is 28.9 percent below 2013’s $4.61.

In recently issued research and data, JLL pointed out that its market data indicates rents are on the rise, with companies on the hunt for warehouse and distribution space.

U.S. Carloads were up 0.3 percent annually at 290,963, and intermodal at 260,893 containers and trailers dropped 2.4 percent compared to the same week last year.

Researchers say the ships are operating in international waters with a "worrying lack" of regulation, adding that they could pose a threat to regional peace and stability.

Compared to November, spot market freight volume was up 3.0 percent, according to the DAT North American Freight Index.

Article Topics

News · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA