THERE are fears that the December 5 reactivation of the shelved AE2/Swan service operated by 2M partners Maersk Line and MSC could reduce rates on the Asia-Europe trades.
The 2M?s plan to resume the suspended service has come much earlier than originally expected by industry experts. According to data compiled by Alphaliner, the reintroduction of the AE2/Swan service would inject a further six per cent of capacity to Asia-North Europe trade lane, reported London's Loadstar.
December is traditionally one of the quietest months of the year and the when the service was initially frozen the 2M partners said it would be reinstated ?in line with demand pick up.?
?This capacity increase will be made in spite of significant uncertainty over the strength of market demand,?said Alphaliner.
According to the analyst, utilisation on vessels departing Chinese ports for Europe slipped below the crucial 90 per cent level in September, ?without the usual pre-holiday rush to ship cargo before the Golden Week holiday that started on October 1.?
It said spot freight rates from China to Europe had plummeted 26 per cent by the end of September, down from a peak season high in August, while headhaul westbound volumes have also fallen. Data from Container Trade Statistics shows total volumes on the Far East-North Europe route decreased by 1.1 per cent year on year between January and August.
?Over the coming weeks, rates could face further downward pressure as carriers jostle for market share during the slack winter season. Weak cargo volumes, combined with the carriers?overall reluctance to withdraw vessel capacity from the Far East-Europe corridor for extended periods, could further drive down freight rates,?Alphaliner said.
Coinciding with the reactivation of the 2M?s AE2/Swan service is the Ocean Alliance?s planned capacity hike on its NEU6/CEM Asia-North Europe service due to alliance member Evergreen taking delivery of new mega ships.
The inaugural sailing of Evergreen?s 20,388 TEU Ever Golden is scheduled to depart from Qingdao on December 7 on the NEU6/CEM Asia-North Europe service that is currently operated by ten 13,800-14,000 TEU containerships.
The service plans to ultimately deploy eleven 20,388 TEU mega ships as the remaining 10 of the carrier?s 11-mega ship order is completed through to the end of the third quarter of 2019.
The 2M?s plan to resume the suspended service has come much earlier than originally expected by industry experts. According to data compiled by Alphaliner, the reintroduction of the AE2/Swan service would inject a further six per cent of capacity to Asia-North Europe trade lane, reported London's Loadstar.
December is traditionally one of the quietest months of the year and the when the service was initially frozen the 2M partners said it would be reinstated ?in line with demand pick up.?
?This capacity increase will be made in spite of significant uncertainty over the strength of market demand,?said Alphaliner.
According to the analyst, utilisation on vessels departing Chinese ports for Europe slipped below the crucial 90 per cent level in September, ?without the usual pre-holiday rush to ship cargo before the Golden Week holiday that started on October 1.?
It said spot freight rates from China to Europe had plummeted 26 per cent by the end of September, down from a peak season high in August, while headhaul westbound volumes have also fallen. Data from Container Trade Statistics shows total volumes on the Far East-North Europe route decreased by 1.1 per cent year on year between January and August.
?Over the coming weeks, rates could face further downward pressure as carriers jostle for market share during the slack winter season. Weak cargo volumes, combined with the carriers?overall reluctance to withdraw vessel capacity from the Far East-Europe corridor for extended periods, could further drive down freight rates,?Alphaliner said.
Coinciding with the reactivation of the 2M?s AE2/Swan service is the Ocean Alliance?s planned capacity hike on its NEU6/CEM Asia-North Europe service due to alliance member Evergreen taking delivery of new mega ships.
The inaugural sailing of Evergreen?s 20,388 TEU Ever Golden is scheduled to depart from Qingdao on December 7 on the NEU6/CEM Asia-North Europe service that is currently operated by ten 13,800-14,000 TEU containerships.
The service plans to ultimately deploy eleven 20,388 TEU mega ships as the remaining 10 of the carrier?s 11-mega ship order is completed through to the end of the third quarter of 2019.