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Far East Trade Newsletter - April

Industry News

 

The New Alliances are now taking shape and the dramatic changes have led to some inevitable disruption.

The 2M Alliance has been least effected as it has had the fewest changes.Maersk and MSC have already been working successfully together for several years. They have now been joined by Hyundai and Hamburg Sud buying slots from them.

HEADLINES

• Radical changes within alliance
The Ocean Alliance (CMA, APL, Cosco, OOCL & Evergreen) and The Alliance (MOL, NYK, K-Line, Hapag, UASC and YML) have all had radical changes.
Although overall space is increasing from 1st April, much of the increased capacity is later in the year. We have seen considerable disruption with so many changes to schedules, with smaller ships on some loops and vessels not in the right, place at the night time leading to tight space availability.

• Delays at ports
Additionally, there have been weather delays, port closures and congestion in Shanghai, Ningbo and Qingdao, which has exaggerated the situation further. The fallout from the collapse of Hanjin in August 2016 has meant that thousands of empty containers are still sitting in these ports, making port operations more difficult. We expect the congestion in the ports to continue until at least the end of May.

• Early bookings
Demand is increasing and supply of space is not yet consistent enough to cater for current bookings. DSV have considerable options at our disposal, but early/accurate booking and forecasting is essential as we navigate through the early stages of the new alliances and into a likely early and perhaps prolonged peak season.

• London Gateway
We remind clients that changes in Alliances have meant that 2 new services in The Alliance are now arriving weekly at London Gateway. This means fewer services to Southampton and now no direct services from either Xiamen or Taiwan to Southampton.

• Rates remain low
Ocean rates remain at low and loss making levels and we expect further regular attempts to increase rates in order to secure positive financial results that are
much needed following 6 years of losses since 2010. An increase for May is already announced and your local DSV office will update your client specific rates very shortly.

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