News / China offers some hope as Russian box trades see more withdrawals

Kapitan Shchetinina. Photo: FESCO

Exits and withdrawals from the East Asia-Russia lane continue as premiums from calling at the sanctions-hit country have all but ended.

East Asia-Russia rates have flatlined at $1,000-$3,000 per teu lately, as the western sanctions continue to batter the Russian economy.

Linerlytica reported that last week, China’s Yangpu Newnew Shipping sold two of its 10 owned ships, the 2007-built 2,553 teu Xin Xin Tian 2 and 3,534 teu Newnew Star 2, to MSC, which continues to build its fleet.

The vessels are now renamed MSC Tian III and MSC Rabat IV, respectively.

Linerlytica said: “The slowdown in the Russian container market this year has already resulted in the departure of CStar Line and its Chinese affiliate, STF Shipping, in October, with other Russian players like Newnew Shipping scaling back their exposure to the market.”

However, the remaining players in the East Asia-Russia market are hoping Christmas will lift cargo volumes.

The Russian Orthodox Church has set Christmas for 7 January, and operators hope this will boost volumes through December.

South Korean media reported that in October, the volume of cargo transported from Busan to far eastern Russian ports, including Vladivostok, fell 19% from September, to 5,600 teu, exacerbated by the Chuseok (Thanksgiving) holiday in South Korea.

However, in the lead-up to Russia’s Christmas, volumes have reportedly recovered to a weekly average of 2,000 teu since November.

Alphaliner said today that Russian carrier Fesco had reorganised a portion of its Far East-Russian Far East network in November, including reinstating the FCDL-2 service after its suspension in April, and its FCDL-3 and FCDL-1 / FVDL routes.

The revised FCDL-1 / FVDL maintains a three-week turnaround, connecting Vladivostok, Ho Chi Minh City, Haiphong, Nansha, Yantian, and Vladivostok, using three 1,700 teu ships.

The reinstated FCDL-2 turns fortnightly, connecting Vladivostok, Tianjin, Dalian, Rizhao, Lianyungang, Vladivostok, with two ships of 1,700 – 3,100 teu, with Lianyugang called once every two sailings.

The revised FCDL-3 now covers Vladivostok, Shantou, Xiamen, Wenzhou, Ningbo, Shanghai, Vladivostok, using two 3,100 teu ships (from three).