Grape demand: carriers line up for a bite as South African export season begins
South Africa’s grape export season has begun, and ocean carriers are lining up for a ...
UPS: MULTI-MILLION PENALTY FOR UNFAIR EARNINGS DISCLOSUREWTC: PUNISHEDVW: UNDER PRESSUREKNIN: APAC LEADERSHIP WATCHZIM: TAKING PROFITPEP: MINOR HOLDINGS CONSOLIDATIONDHL: GREEN DEALBA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING
UPS: MULTI-MILLION PENALTY FOR UNFAIR EARNINGS DISCLOSUREWTC: PUNISHEDVW: UNDER PRESSUREKNIN: APAC LEADERSHIP WATCHZIM: TAKING PROFITPEP: MINOR HOLDINGS CONSOLIDATIONDHL: GREEN DEALBA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING
Service suspensions are likely to be the main theme of the ocean shipping alliances’ new 2024 networks.
As is traditional at this time of year, the three east-west vessel-sharing alliances normally announce their network adjustments. effective from next April.
However, this year’s news of THE Alliance partners Hapag-Lloyd, ONE, Yang Ming and HMM’s revised 2024 network is considerably less bullish in tone than 12 months ago.
Indeed, a year ago THEA members announced “a service network upgrade plan” that included replacing smaller tonnage with the deployment of 24,000 teu ultra-large vessels on the Asia-North Europe tradelane, as well as the additional deployment of 14,000 to 15,000 teu vessels on the Asia to Mediterranean and Asia to US east coast routes.
This year, the network adjustment message from the THEA carriers is much more subdued. But on a positive note, THEA says it will introduce more ships into the network.
“One of the key highlights in 2024 will be deploying additional tonnage in several services to ensure the most comprehensive coverage and the most reliable schedule under the existing operational conditions,” said THEA.
The new network reflects the uncertainty of demand requirements for Europe and the US next year, with an extension of two previously temporarily suspended services.
In July, THEA announced the temporary suspension of its transpacific PS5 Asia to US west coast loop from August, “in consideration of the present market situation”, while increasing coverage of the remaining PS3, PS6 and PS7 strings by adjusting their rotations.
In its 2024 network, the alliance says that, as an extension of its winter programme, the PS5 service will be “suspended until further notice”.
The PS5 loop deployed six ships of between 8,000 and 9,000 teu, all supplied by Japanese carrier ONE, between Shanghai, Ningbo, Los Angeles, Oakland and Tokyo.
Elsewhere, THEA will also continue to mothball the fifth string of its Asia-North Europe network.
In October, again “in consideration of the present market situation”, THEA decided to suspend its FE5 loop “until further notice” from mid-November. And, according to the 2024 plan, the FE5 suspension will continue at least until April.
In terms of weekly capacity, the FE5 loop was the second smallest of its Asia-North Europe services, deploying ten ships of between 13,800 teu and 14,100 teu, calling at Laem Chabang, Cai Mep, Singapore, Colombo, Rotterdam, Hamburg and London Gateway, with a round trip of approximately 11 weeks.
Meanwhile, the Ocean Alliance members, CMA CGM, Cosco (including OOCL) and Evergreen, are expected to release their 2024 network details in the coming weeks and it will be interesting to see if they take a similarly conservative approach towards supply/demand requirements for next year.
But it seems unlikely that the 2M will publish any network changes, given that the VSA partnership of Maersk and MSC is due to end within the next 13 months.
Nevertheless, it will be interesting to see how Maersk phases-in the deployment of the first of its series of 18 16,000 teu methanol-enabled ships. The first is slated to join its AE7, and MSC’s Condor, loop on 9 February – albeit that the string is now totally supplied with Maersk vessels.
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