News / More ships on East Asia-Russia lanes push up capacity by 44%

Honrise: VesselFinder

Capacity on East Asia-Russia routes has gone up by 44% over the past year, as opportunistic operators continue to buy ships to move goods to and from Russia.

Mainline operators pulled out of Russia after its invasion of Ukraine and international sanctions were implemented.

Linerlytica’s latest report, issued yesterday, says East Asia-Russia capacity now stands at 121,757 teu, up from 84,818 teu in October 2022. Total actual capacity on Russia-connected routes would be higher, as there are also services between India, Turkey and Russia.

Linerlytica said: “Second-hand sales activity continues to be dominated by two key buyers – MSC and Russian traders.”

Newcomer Russian box line Transmasters has chartered three elderly ships that Wan Hai Lines sold in August, Wan Hai 261, Wan Hai 262 and Wan Hai 263, to a Chinese entity and renamed Honrise (pictured), New Everprosper and Star Bright.

In October 2022, Transmasters launched operations with a service connecting Russia’s Baltic region to Lianyungang, Taicang and Nansha, in China. The three ships have replaced the various general cargo ships Transmasters had deployed on this route.

Last week, Yangpu Newnew Shipping, which recently started a service through the Northern Sea Route, made its 12th vessel purchase, the 2007-built 3,534 teu Northern Defender (renamed Newnew Star 2) from German tonnage provider Norddeutsche Vermogen Holding. while the 2000-built 2,262 teu Spirit Of Cape Town has been acquired by Chinese buyers and renamed TB Fengze to be chartered to another Russia-focused operator, Safetrans.

Both Newnew Star 2 and TB Fengze will be deployed on China-Baltic Russia services.

Despite downward pressure on freight rates as a result of the entry of more opportunistic newcomers, Linerlytica analyst Tan Hua Joo told The Loadstar freight levels remained profitable at around $1,000 to $2,200 per teu, down 75% year on year.

Figures from South Korea’s Ministry of Oceans and Fisheries show the South Korea-Russia route, which had been in a lull, revived as cargo was pushed out ahead of China’s Golden Week holiday.

By the second week of September, 7,000 teu had been shipped from Busan Port to Far East Russia, a 10% increase on the same period a month earlier. The cargo volume in the last two weeks of September is expected to exceed 8,000 teu.