Ocean carriers realign in EU-Asia trade lane

“The stage is thus set for the next struggle between carriers,” said analysts
By Patrick Burnson, Executive Editor
January 24, 2012 - LM Editorial

The final pieces of the Far East-North Europe jigsaw are falling into place following last week’s confirmation by UASC that the carrier will expand its cooperation with CSCL and CMA CGM on the trade, effective from February.

According to the Paris-based consultancy, Alphaliner, active players in the Far East-North Europe trade have confirmed their respective plans for 2012, although some partnership details are still to be finalized.

“The stage is thus set for the next struggle between carriers,” said Alphaliner’s commercial director, Stephen Fletcher.

The Far East-North Europe partnership reshuffle of 2012 will see the most significant carrier re-alignment since 1996-1997, when the last major alliance restructuring took place, said analysts. By the end of June 2012, the new network configurations of the various carrier alliances should be fully implemented.

Until this point in time, the total weekly capacity on the trade is expected to rise by up to 14 percent (assuming all services are implemented as planned) compared to the capacity at the beginning of the year, and by up to 2.5 percent year-on-year, compared against the figure for June 2011, based on Alphaliner estimates.

“Carriers are however trying to dampen their capacity increases in the face of weakening demand, deferring some of the new capacity upgrades, pulling out the smaller loops and shifting some of the largest newbuildings to secondary trades,” said Fletcher.

This is illustrated, he added, by the planned assignment of several UASC 13,100 twenty-foot equivalent units (TEUs) newbuildings to a Far East-Middle East loop operated jointly with CSCL and CMA CGM. This will be the first time that ships of over 10,000 TEU are deployed.



About the Author

image
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 .(JavaScript must be enabled to view this email address).


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

Carload volumes were up 2.8 percent at 304,276, and intermodal volume for the week ending August 16 was up 5.4 percent at 270,316 containers and trailers.

Even though this data can be viewed as “old” in the sense that there is not a whole lot new to report about the port labor talks, it does a good job of looking into the mindset of shippers as talks continue.

Company officials said this service will be provided without any type of additional cost for customer shipments traveling from Ohio, Michigan, and Indiana, with expedited services available to customers outside of this area.

FTR says both spot rates and contract rates are heading up in a full capacity environment and with the fall shipping season rapidly approaching, it explained conditions for shippers could further deteriorate.

Read how others are using Business Process Management to achieve ERP success with Microsoft Dynamics AX. Download the free white paper now.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

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