Hapag-Lloyd culls China-Germany service amid tonnage supply concerns
Hapag-Lloyd is to withdraw its China-Germany express service (CGX) in February, as the German mainline ...
Photo: Maersk
Maersk and MSC are busy reviewing new standalone east-west service opportunities outside their 2M Alliance cooperation, with just 10 months of the vessel-sharing agreement left to run.
However, the Danish carrier’s decision making will be complicated by its partnership with Hapag-Lloyd in the Gemini Cooperation from next February, whereas for non-alliance participating MSC, its standalone offering will most likely remain as is.
A surge in container imports into the US in February, a slight easing of Panama Canal transit restrictions and spot rates at least twice as high as a year ago, has all encouraged Maersk to reinstate its TP20 service from China to the US east coast next month.
The ‘premium’ service loop was launched by Maersk in August 2021 – outside the 2M and Zim slot charter partnership – deploying 4,500 teu panamax-type vessels to benefit from the up to $20,000 per 40ft market rates at the time.
However, the carrier announced last month it had decided to “temporarily suspend” the TP20, citing predicted “reductions in global demand”. But on 21 April, the first sailing of the revised TP20 will be performed by the 2010-built 4,334 teu Maersk Wallis from Qingdao.
The vessel will also load at Shanghai and Yantian in China for Newark, Baltimore and Houston on the US east and Gulf coasts.
Meanwhile, John McCown’s top-ten US container ports analysis for February recorded a huge year-on-year 25.3% jump in import containers during the month, to 1,833,319 teu.
“While this is a blockbuster increase, and points to underlying economic vibrancy using any yardstick, note that February is the quirkiest of months when it comes to measuring the variances related to inbound container shipments,” said Mr McCown.
The consultant pointed to the timing of the Chinese New Year holiday this year, falling on 10 February, 19 days later than in 2023, as well as the more minor reason of 2024 being a leap year, with 29 days in February, as having some bearing on the big leap in import volumes.
Mr McCown’s analysis also reflected the continued reversal of the coastal shift of cargo from west to east, with US pacific ports recording growth of 39% in February, compared with the same month of last year, while US east and Gulf coast ports saw a more modest 14.6% gain.
“The re-shifting back to the west coast ports of some of the volume that moved eastward continues to drive the recent coastal swings,” he said.
And perhaps another factor influencing Maersk’s decision to reinstate its TP20 loop is the expectation of an early peak season this year, prompted by the Red Sea crisis extending some Asia-US east coast loops, as well as the uncertainty surrounding negotiations over a new east coast labour contract, the current agreement between the International Longshoremen’s Association and the United States Maritime Alliance expiring on 30 September.
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