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Far East Trade Newsletter

Industry News

 

With Chinese New Year firmly behind us we look forward to the 2nd Quarter of 2017 heralding the biggest shake up in carrier alliances ever seen.

Following the collapse of the Korean carrier Hanjin Shipping in the summer of 2016 and the poor financial results announced by all carriers last year, the consolidation of the carriers and the reduction in the consortiums previously announced, is about to become effective from 1st April 2017.

HEADLINES

Change of alliances
Previously four alliances reduced to three alliances branded as the Ocean Alliance, The Alliance and 2M.

Weekly services
Previously 16 services weekly on Asia/Europe trade of which 13 services called at UK ports.  There continues to be 13 services calling weekly in the UK, but two services in The Alliance will now call at London Gateway on a weekly basis.

Taiwan
There is no longer any direct service from Taiwan to Southampton. The 2 direct services from Taiwan call now at Felixstowe and London Gateway.

Increase of Capacity
Capacity has been published by Load Star & Alpha liner as increasing by 9.6% on the Asia/Europe trade by the end of the year.  This has been brought about by services being upgraded to much larger vessels and the addition of 1 extra Asia/Europe service in 2M.

Transit times
Slow steaming continues and transit times are roughly the same as before and shown on attached matrix. Some services calling into UK are last port of call and so much slower.

The Alliance partners 
The Alliance partners consist of MOL, NYK, K-Line (three Japanese lines scheduled to merge in Q1 2018) along with Hapag Lloyd and UASC who are scheduled to merge in the next couple of months and the Taiwanese carrier Yang Ming Line.

The Ocean Alliance 
The Ocean Alliance consists of CMA and APL who last year were bought by CMA. Cosco who last year were merged with China Shipping, OOCL and Evergreen.

2M services
2M consisting of Maersk Line and MSC with Hyundai, noting that Hamburg SUD is expected to be taken over by Maersk Line by the end of the year. Hyundai & Hamburg SUD will slot charter on 2M services from Asia to Europe/UK.

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