ASIA-EUROPE container shipping lines are upping capacity on the Asia-Europe trades, running the risk of pulling down at best wobbly freight rates.
Up to 28,000 TEU weekly, equivalent to 10 per cent of existing capacity, will be added to this leading trade lane this year, according to Alphaliner data.
This includes 22,000 TEU from the Ocean Alliance carriers, which earlier this month announced their Day 3 product that adds a seventh weekly string to the route and upgrades a third string to 20,000 TEU box ships, reported Lloyd's List.
The Alliance is also injecting 4,000 TEU of weekly capacity on this trade lane by upsizing its FE5 string of vessels from 10,000 TEU to 14,000 TEU by March, Alphaliner said.
Hyundai Merchant Marine (HMM) plans to replace its 4,700 TEU - 5,100 TEU tonnage with 6,300 TEU - 6,800 TEU vessels from May.
'This move will add some 1,500 TEU per week to the route for HMM, which has also committed to introduce 12 new ships of 23,000 TEU on the Asia-Europe route in the second quarter of 2020,' Alphaliner said.
The 2M alliance of Maersk and Mediterranean Shipping Co will be the only ocean liners without plans to add capacity in 2019, apart from the re-introduction of the AE2/Swan service after a 12-week suspension last year, Alphaliner noted.
'2M may not be as willing to withdraw service capacity again this year, as its rivals continue to erode the 2M's market share on this route,' Alphaliner warned.
There is always the chance that the additional capacity injection could drag down sea freight rates. Alphaliner observed that the Shanghai Containerised Freight Index for spot rates dropped in the run up to the Lunar New Year holidays.
'The 10 per cent increase in total weekly capacity could put pressure on the Asia-Europe route as carriers continue to fight for market share, with a key test to come after the Chinese New Year holidays when demand drops due to factory closures in Asia.'
WORLD SHIPPING
Up to 28,000 TEU weekly, equivalent to 10 per cent of existing capacity, will be added to this leading trade lane this year, according to Alphaliner data.
This includes 22,000 TEU from the Ocean Alliance carriers, which earlier this month announced their Day 3 product that adds a seventh weekly string to the route and upgrades a third string to 20,000 TEU box ships, reported Lloyd's List.
The Alliance is also injecting 4,000 TEU of weekly capacity on this trade lane by upsizing its FE5 string of vessels from 10,000 TEU to 14,000 TEU by March, Alphaliner said.
Hyundai Merchant Marine (HMM) plans to replace its 4,700 TEU - 5,100 TEU tonnage with 6,300 TEU - 6,800 TEU vessels from May.
'This move will add some 1,500 TEU per week to the route for HMM, which has also committed to introduce 12 new ships of 23,000 TEU on the Asia-Europe route in the second quarter of 2020,' Alphaliner said.
The 2M alliance of Maersk and Mediterranean Shipping Co will be the only ocean liners without plans to add capacity in 2019, apart from the re-introduction of the AE2/Swan service after a 12-week suspension last year, Alphaliner noted.
'2M may not be as willing to withdraw service capacity again this year, as its rivals continue to erode the 2M's market share on this route,' Alphaliner warned.
There is always the chance that the additional capacity injection could drag down sea freight rates. Alphaliner observed that the Shanghai Containerised Freight Index for spot rates dropped in the run up to the Lunar New Year holidays.
'The 10 per cent increase in total weekly capacity could put pressure on the Asia-Europe route as carriers continue to fight for market share, with a key test to come after the Chinese New Year holidays when demand drops due to factory closures in Asia.'
WORLD SHIPPING