News / Dubai's CStar Line ceases operations as demand weakens

CStar Voyager, Renaud Blavignac

Dubai-based CStar Line, one of the opportunistic newcomers to Russian services in 2023, is ceasing all operations just three months after launching a China-Red Sea service.

Linerlytica reported today that CStar and Chinese affiliate STF Shipping had become the latest casualties of weakening cargo volumes to and from Russia.

After the United Nations, US and EU imposed sanctions on Russia following its invasion of Ukraine in February 2022, mainline operators stopped almost all services to Russia. This created a vacuum which opportunistic players rushed to fill.

However, as sanctions have taken their toll on Russia, freight rates have softened, ranging from $900-$2,800 per 40ft.

And the writing was seen on the wall in August, when liner database eeSea disclosed that CStar had suspended one Asia-Europe and three Asia-Middle East services, ending its involvement in Russian routes and solo services on any major trade.

Chinese media reports suggested CStar owed around $11m in service fees to Russian stevedoring companies.

In July, CStar started a service connecting Ningbo, Shanghai and Nansha to the Red Sea, but Linerlytica said five of the eight 1,100-2,200 teu ships deployed on the route had been idle for the past three weeks, with the three remaining ships now also in limbo.

Linerlytica data show 69 ships, amounting to 73,314 teu, are in Russian Far East trade, down 23% year on year. And ship operators specialising in East Asia-Russia shipments told The Loadstar expectations of a spike in volumes ahead of annual holidays in China and South Korea did not materialise.

One executive said: “This year, the market isn’t in our favour. Some South Korean operators even blanked sailings this month to address market conditions.”

Korea Customs’ data shows that last month, cargo transported from Busan to Far Eastern Russian ports, including Vladivostok, amounted to 6,920 teu, 5% down on August carryings.