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What's happening in Europe
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Little capacity growth is revealed in P3 alliance proposed
schedules |
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P3 ALLIANCE members Maersk Line, MSC and CMA CGM have opted for only moderate vessel capacity growth in their proposed Asia-Europe and Asia-North America for the second quarter of 2014, which are subject to regulatory approval in the US, EU and China.
A report by London's Drewry Maritime Research said this suggests that "service quality rather than quantity will be the P3 alliance's main fighting tool" against its competitors.
With regard to Asia-North Europe routes, only a 2.25 per cent increase is planned compared to the available capacity at the start of September (excluding transshipments and slot charter cargo).
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East trumps west in Mediterranean with eastern European
cargo diverting to Med ports |
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DESPITE more mega ships in the world fleet, vessel capacity cascading into the Asia-Mediterranean tradelane between has been minimal, according to London's Drewry Maritime Research.
But carriers need to cancel sailings from Asia to stabilise westbound rates as there is little sign of economic recovery in the western Med to do the job, say Drewry analysts.
The withdrawal of the ABX Black Sea service alone - a reduction of vessel capacity of seven per cent on the tradelane - will still not be enough to keep utilisation above 90 per cent during the winter, they said.
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East-West cascading sparks North-South rate war as
capacity proves hard to soak up |
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A NORTH-SOUTH rate war is breaking out as east-west capacity is cascaded down to lesser trades, causing rates to plunge, says Dewey's Maritime Research.
In July and August carriers maintained June's eastbound capacity levels at 1,167,000 TEU in July, cutting one per cent in September to 1,146,000 TEU through the cancellation of 12 sailings in September against two in August.
Drewry noted that cascading of unwanted Asia-Europe vessels appears to have stopped, as the average vessel size - 6,175 TEU - has remained constant.
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North Europe's peak season still disappointing
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THE Asia-Europe container trades in both directions were disappointing, registering on the slightest uptick from July to August, but still slightly better than last year's lacklustre season.
Westbound cargo flows in 2013 from Asia to North Europe, covering the peak of the peak season in August at 844,000 TEU compared to 837,000 TEU in July and 793,000 TEU in June.
Figures from Container Trades Statistics (CTS) through August shows a one per cent increase in year-to-date volume to 6,183,000 TEU over last year.
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November
Issue - U.S. Trade
Preparing for conflict: Life of US west coast ports threatened
by longshore-
men's greed >More
US east coast planners expect smaller vessels rather than the mega ships to
come
>More
US Hours of Service rules for truckers add another burden that slows global
recovery
>More
Outcome of Panama versus Suez rivalry for US east coast Asia cargo yet to
play out
>More
Transpacific trade prospects remain uncertain but TSA
carriers endeavour to
hike rates
>More
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October
Issue - Intra Asia Trade
Indonesian exports stay robust, despite economic woes:
Maersk report
>More
Intra-Asia to lead trade growth in 2013, but questions on
stability remain
>More
Intra-Asian trade boosts Port Klang throughput
>More
No takers for liner trade in Malaysia
>More
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September
Issue - Mediterranean &
Africa Trade
Africa remains a high growth area for port development,
says Drewry
>More
Drewry: Chinese terminal operators invest overseas to
diversify risk
>More
Drewry sees Asia-Mediterranean trade decline as a
worldwide trend
>More
West-east Med-North America box route May traffic up, but capacity
slips
>More
If Suez shuts down, we have capacity, speed to cope via
Cape: Drewry>More
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August
Issue - China Trade
Is there more to the 'Big 3' alliance than meets the eye?
>More
How Carrefour's China sourcing paid off
>More
MSC's move to all in rates an ominous sign for carriers?
>More
It pays to be big in container shipping these days>More
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July
Issue - Europe Trade
Information overload leaves industry confused about outlook
>More
Record-high delivery of boxships in 2013, but fleet growth may be
marginal
>More
East-West rates sharp slump reveals rising volatility in
container
shipping
>More
The covert consolidation of the container shipping industry >More
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June
Issue - U.S. Trade
US economic outlook - is the glass half full or half empty?
>More
The 'new normal' in a post-financial crisis world
>More
Keeping an eye on supply in 2013
>More
Where to now for China as low-value goods manufacturing
reaches
plateau >More
Global shipper highlights the need for carriers to focus on
service and not price >More
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May
Issue - Mediterranean & Africa Trade
Bleak outlook for Asia-Med in 2013, but big ships may
prove key to
optimism
>More
Trade profile: The Red Sea (An Overview)
>More
Weak Asia-Med volumes not enough to dampen
Barcelona's spirit
>More
Volatility to persist for Asia-Europe and Med rates in 2013 >More
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April
Issue - Intra Asia Trade
Up and coming Cambodia to play growing role in
Intra-Asia trade
>More
Thai authorities to invest hopes on Laem Chabang port
>More
Cabotage: a formidable barrier to world trade growth, says
World
Economic Forum
>More
Cheap Malaysian bunker fuel lures carriers away from
Singapore >More
Global container trade growth for 2013 revised down as
market mood
darkens >More
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March
Issue - China Trade
Shipyard capacity could be slashed by 40pc and still meet demand
>More
How Carrefour's China sourcing paid off
>More
Big ships do shippers no favours: fewer calls, slow transits, high
inventory costs
>More
Early forecast points to stronger 2013 after
disappointing 2012 >More
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February
Issue - Europe Trade
Will a merger between Germany's two premier
container carriers materialise? >More
High hopes for Wilhelmshaven terminal amidst
Europe gloom >More
Weak Asia-Med volumes not enough to dampen
Barcelona's spirit
>More
Go big or go home: Smaller carriers' days on
Asia-Europe trade are
numbered
>More
The challenges of creating stability in a naturally
unstable market
>More
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January
Issue - U.S. Trade
Shippers and carriers realise the benefits of shipping
through Houston
>More
US data offers confusion about economic outlook for
shipping's number
one customer
>More
Port of Portland set to take advantage of changing
global economic climate
>More
Ports must view market as a marathon, not a
100-metre sprint, says Long
Beach
>More
Is the sunset of panamax vessels close at hand?>More
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December
Issue - Intra Asia Trade
No luck for PSA in Indian Subcontinent as terminal operator looks to homeward expansion
>More
How much has changed in the liner landscape in 2012
>More
Trade profile: Southeast Asia (Overview)
>More
Myanmar calling: shipping lines set sights on new opportunity
>More
What will be the fate of Malaysia's Penang Port? >More
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