CONTAINER shipping volumes moved from Asia to the US east coast in May and June averaged 334,000 TEU, down from April's 337,000 TEU while west coast throughput was up one per cent.
This despite added capacity to the all-water route in May, and bigger and better services via the Suez, noted analysts from London's Drewry Maritime Research.
The result suggests these new improved services are not compelling enough for shippers to switch from west to east coast ports - nor does it bode well for this year's peak season, they say.
In reaction to the weak cargo growth, ocean carriers cut eastbound vessel capacity by 2.8 per cent in June, down to 405,846 TEU. One sailing was cancelled in May, two in June and one in July. It warns that increased eastbound sailing cancellations should be expected from September onwards to help shipping lines better balance supply and demand.
The average utilisation of all ships sailing from Asia to ECNA dropped from 89 per cent in April to 81 per cent by June, taking freight rates with it.
With the opening of the expanded Panama Canal locks due in two years' time, the Panama Canal Authority must be worried by the failure of all-water services to attract more business away from ports on the west coast of North America. Their share of the total eastbound transpacific market remains at 25 per cent, and 27 per cent of the westbound market share.
To boost throughput volumes east coast North American ports have been further investing money into infrastructure improvements. For example, the Florida Department of Transportation has granted a further US$5 million towards the development of four logistics projects that will assist with inland transport of containers to/from Miami in more competitive 53-foot containers (via transloading).
Containerised exports from the east coast North America to Asia decreased 10 per cent between the first quarter of 2013 and the second quarter to 473,000 TEU, compared to a decline of five per cent from west coast ports.
Containerisable exports from North America to China were up 20 per cent between the two quarters, up to 2,375,339 tons, according to Global Trade Information Services (GTIS), while those to Japan rose nine per cent to 663,000 tonnes.
Container traffic from ECNA to Asia in the first half of the year increased four per cent compared to the same period last year to 997,000 TEU, while volume from WCNA suffered a decline of four per cent.
WORLD SHIPPING
27 August 2013 - 17:43
All-water routes fail to bring high volumes to US east coast as forecast
CONTAINER shipping volumes moved from Asia to the US east coast in May and June averaged 334,000 TEU, down from April's 337,000 TEU while west coast throughput was up one per cent.
WORLD SHIPPING
27 August 2013 - 17:43
All-water routes fail to bring high volumes to US east coast as forecast
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