News / CStar Line to cut Russia feeder services for more-profitable Red Sea routes

Dubai-based Russia-focused CStar Line, which emerged in the market a year ago, is axing most of its Far East Russia feeder services in favour of more-lucrative Red Sea routes.

According to Alphaliner, CStar Line will cease its Far East-Far East 1, Far East-Far East 2 and Far East-Far East 4 services, which connect Vostochny to ports in China and South Korea, served by five feeder vessels.

The Far East-Far East 3 shuttle service, between Busan and Vostochny, will continue.

When CStar Line commenced operations, it was one of several niche players targeting an area abandoned by mainline operators due to sanctions against Russia.

It launched its Middle East-Red Sea 1 (MER1) service on Saturday with a 20-day turnaround, using 1,600 teu ships, CStar Fevroniya and CStar Peter, that call at Jebel Ali, Djibouti, Jeddah, Djibouti and Jebel Ali.  Ithas an irregular rolling schedule with a frequency of around 10 to 11 days.

Linerlytica analyst Tan Hua Joo told The Loadstar Far East Russian routes were less viable for small carriers, noting that CStar Line continues to offer Russian connections from the Far East, Indian Subcontinent and East Mediterranean, via the Black Sea and the Baltic.

Mr Tan said: “The Far East trade is not profitable for the small carriers and CStar is shifting its focus to the Red Sea where it is more profitable.”

Like other opportunistic newcomers, CStar, which operates 14 vessels ranging from 900 to 2,700 teu, is filling a gap vacated by mainline operators that have shied away from the Red Sea after Iran-backed Houthi rebels began attacking vessels last October.

Sanctions against Russia have also made it challenging to move goods to and from Russia, particularly on sea.

In February, sanctions were imposed against Russian terminal operator Vostochnaya Stevedoring, which operates four container berths in Vostochny. Consequently, with limited alternative ports, shippers have resorted to moving cargo via the Trans-Siberian Railway and Trans-China Railway.