News / Hapag-Lloyd culls China-Germany service amid tonnage supply concerns

Photo: Hapag-Lloyd.

Hapag-Lloyd is to withdraw its China-Germany express service (CGX) in February, as the German mainline operator allays concerns that the new Gemini Cooperation has enough vessels to commence operations.

Gemini, an alliance between Maersk Line and Hapag-Lloyd, began taking bookings for all its services last Tuesday, The network covers seven trades and offers up to 59 services, including mainliner and shuttle services.

The end of the CGX was revealed by consultancy Linerlytica, which added that cancelling the service would free-up its ten 3,000-9,000 teu ships. The disclosure comes less than a month after Hapag-Lloyd tweaked the CGX rotation.

A Hapag-Lloyd spokesperson told The Loadstar: “Network adjustments are a standard part of our operations and are made regularly to ensure we continue meeting customer needs effectively.”

On industry talk that Gemini may be short of vessels, the spokesperson said the phasing-in of the alliance network had been carefully planned and there were enough ships to meet operational demand.

Linerlytica had noted that Gemini’s published schedules for February show several blanked sailings that coincide with the usual post-Chinese New Year lull, but perhaps reflected the partners’ shortage of tonnage.

But Hapag-Lloyd’s spokesperson said: “We already know all 345 ships required for the Gemini network by name, and are in the final stages of implementing our phase-out and phase-in plans between THE Alliance (which will be renamed Premier Alliance) services and the new Gemini network.”

Reported vessel charter fixtures show Hapag-Lloyd has renewed the charter on SFL’s 2014-built 15,440 teu Vancouver Express for five years at $49,250/day, and Alphaliner notes that the carrier has chartered the 2001-built 3,739 teu LTC John UD Page from US shipowner Sealift for $31,000/day, for around 30 months.

Alphaliner said: “This US-flagged vessel is traditionally used on US military or government contract businesses. But the dearth of container tonnage and the current remunerative charter rates seem to have convinced its owner to trade the ship on civil contracts.”